🟢 Statements from Jerome Powell - Chair of the US Federal Reserve:
🔸 About inflation and tariffs:
There is a risk that passing the impact of tariffs onto prices slowly may make inflation appear more persistent than it actually is.
🔸 About the labor market:
The labor market shows clear negative risks, and data since the July meeting indicate that the market has weakened significantly.
🔸 About monetary policy:
With risks more balanced between inflation and employment, monetary policy should move towards a more neutral stance.
🔸 Warning against haste:
If the Fed moves too quickly to lower interest rates, it may leave the task of combating inflation incomplete.
🔸 About the natural employment rate:
Powell indicated that he would not attempt to accurately determine the balanced employment rate, as the margin of error in estimation could reach about 50,000 jobs.
🔸 About employment:
Powell confirmed that he would not try to determine the exact balanced employment rate, noting that the margin of error in estimating this rate is about 50,000 jobs.
He added that the required growth rate to maintain labor market stability has significantly decreased recently.
🔸 About the impact of monetary policy:
Powell said that research indicates that the impact of monetary policy on the labor market and inflation is taking longer to manifest, meaning that the results of interest rate decisions do not appear immediately in economic data.
🔸 About the effectiveness of monetary policy:
Despite this delay, Powell emphasized that the channels of monetary policy transmission are still functioning as the Fed expects, which means that raising or lowering interest rates still has the desired effect on the economy over time.
🔴 About gold and bitcoin:
Powell said he would not comment on the prices of gold or bitcoin, stressing that inflation is fundamentally driven by real supply and demand factors in the economy, not by asset movements or speculation in financial markets.
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