U.S. Federal Reserve Chairman Jerome Powell indicated the possibility of interest rate cuts soon, as concerns about inflation persist.
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🟢 Signals of a potential interest rate cut
Powell stated that "a decline in the labor market may warrant an interest rate cut," noting that economic data indicates a slowdown in job growth. However, he added that the Federal Reserve will continue to carefully monitor economic data before making any decisions.
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🔴 Inflation remains a challenge
Despite signals of a potential interest rate cut, Powell warned that inflation is still above the 2% target, which could impact future monetary policy decisions.
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🔄 Updating the monetary policy strategic framework
Powell announced an update to the monetary policy strategic framework, focusing on greater flexibility in facing future economic challenges. He noted that this update reflects changes in the U.S. economy, including changes in productivity and fiscal policies.
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📉 Impact of the speech on financial markets
Following Powell's speech, U.S. stock indices rose, indicating that markets expect a rate cut in the near future. However, investors remain cautious amid ongoing inflation concerns.