Powell's Key Points
As expected, the Fed left interest rates unchanged at 4.50% today, after which Powell's press conference began, here's what the Fed chief had to say :
🔴 The Federal Reserve says "risks of rising unemployment and inflation have increased."
🔴 Powell began by saying that inflation had fallen significantly.
🔴 He said if tariffs are not reduced, this could lead to higher inflation, slower economic growth and increased unemployment.
🔴 The US economy is robust and performing reasonably well.
🔴 Jerome Powell said we will not meet our goals this year if tariffs remain in place.
🔴 We won't know what the right answer is until we get more data, Powell said, referring to the CPI and unemployment.
🔴 Powell notes that the Fed does not publish forecasts about the likelihood of a recession.
🔴 Powell believes there may be no further progress toward the Fed's goals for at least the next year.
🕯 Markets React: The dollar is at a daily high, while the S&P500 is falling during today's trading session. Meanwhile, BTC reacted mutedly, slipping 1.5%. The probability of a June rate cut has slightly decreased to 20% from around 25% before the meeting.
⚡️ Bottom line: Powell's rhetoric remains more muted on Trump's tariffs, as inflation risks remain very high despite the latest cuts.
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