Jerome Powell, the Chair of the U.S. Federal Reserve, delivered a speech today at the Comprehensive Review Conference of the Capital Framework for Large Banks, discussing monetary policy and the U.S. economy. Here are the key points from his speech¹:
- *Monetary Policy*: Powell did not announce any changes to interest rates, instead focusing on technical issues related to banking capital rules. This led to a decrease in market expectations for interest rate cuts.
- *Interest Rates*: The Federal Reserve is not in a hurry to cut interest rates and will maintain a higher interest rate in the near future to keep inflation under control.
- *Inflation*: Inflation is still above the 2% target, but Powell indicated that the Federal Reserve is closely monitoring inflation and will continue to take steps to adjust the economy.
- *Market Expectations*: The likelihood of not cutting interest rates in the near future dropped from 42% to 35% after Powell's speech.
- *Market Reaction*: The cryptocurrency and gold markets experienced limited fluctuations after Powell's speech, with Bitcoin rising and Ethereum declining.
It is noteworthy that Powell did not announce his resignation during the speech, despite rumors circulating on this topic.
