#PowellRemarks

Federal Reserve Chair Jerome Powell's recent remarks have provided valuable insights into the current state of the US economy and monetary policy. Here are some key points from his statements ¹ ² ³:

- *Inflation*: Powell acknowledged that inflation has been running above the target goal, but expressed confidence in the Fed's approach to managing inflation and economic stability.

- *Interest Rates*: Powell suggested that the current monetary policy stance leaves the US economy well-positioned, and the Fed is awaiting further clarity on the impact of tariffs and other economic developments before making any decisions on interest rates.

- *Tariffs*: Powell emphasized that the cost of tariffs will likely fall on consumers, and the Fed wants to see more data before making judgments on their impact. He expects to learn more about tariffs this summer.

- *Economic Growth*: Powell noted that the economy is in a solid position, but uncertainty remains elevated. The Fed has downgraded its estimates for economic growth in 2025 and lifted its forecast for unemployment slightly.

- *Monetary Policy*: Powell stressed that the Fed's priority is to maintain price stability and ensure that inflation expectations remain firmly anchored. The Fed is prepared to adjust policy as needed to achieve its dual mandate of maximum employment and price stability.

Powell's remarks have had significant implications for financial markets, including ³ ⁴:

- *Cryptocurrency Market*: Cryptocurrencies rallied after Powell hinted at possible interest rate cuts starting in September, but hawkish remarks led to concerns about tighter monetary policy and inflation, resulting in $430 million in outflows from Bitcoin.

- *Mortgage Rates*: Mortgage rates fell after Powell's remarks at the Economic Club of Chicago, where he emphasized the need for clarity on policy impacts before considering rate cuts.