Jerome Powell, the Chairman of the U.S. Federal Reserve, delivered an important speech yesterday, where he provided clarifications on monetary policy and inflation. Here are more details about the speech and its impacts:

*Key Statements from Powell:*

- *Inflation*: Powell confirmed that the Fed is working to reduce inflation to its targeted goal of 2%. He noted that inflation is still slowly decreasing as a result of recovering from the major economic shocks that occurred in 2021 and 2022.

- *Interest Rate*: The benchmark interest rate was cut by 25 basis points to a range of 4.25%-4.5%. This decision reflects a monetary policy aimed at achieving economic stability while continuing to face inflation challenges.

- *U.S. Economy*: Powell pointed out that the U.S. economy is performing very well, and there are no reasons to believe that a recession is more likely than usual.

*Impact of Powell's Speech on Markets:*

- *Stocks*: Tech stocks rose after Powell's speech, while the Dow Jones index declined. This reflects investors' expectations that monetary policy will remain accommodative to support economic growth.

- *Gold*: The price of gold fell below $1,800 per ounce. This may be a result of expectations for rising interest rates or an improving U.S. economy.

- *Oil*: The price of oil rose after Powell's speech. This may be due to expectations for increased oil demand as a result of the improving U.S. economy [1].