⚡ Jerome Powell (head of #FED):
(part 2)
✔ There is a risk that the gradual impact of tariffs may develop into a sustained inflationary process.
❗️A too-rapid easing of policy (rate cut) could leave the fight against inflation unfinished.
✔ Data from July shows a noticeable weakening in the labor market.
✔ Inflation is still rising.
❗️If the government shutdown lasts too long, the Fed will begin to lose access to data, complicating analysis.
✔ Data on economic activity is proving better than expected, creating a contradiction with weaker labor market indicators.
✔ The Fed managed the crisis as well or even better than any country in the world.
❗️Indicators show that the Fed's balance sheet is still in surplus (#QT).
❗️We are beginning to observe a slight tightening in the money market.