🔴Urgent: Important statements from Federal Reserve Chairman Powell
The Fed Chairman appeared in today's talk after the last interest rate decision, when the board decided to cut interest rates by 25 basis points.
Powell said inflation was on track to hit the Fed's 2% target and that the Fed was in no rush to cut rates.
Gold erased its gains after the comments and fell to $2,569 an ounce in spot transactions, while the dollar index continues its upward path at 106.825.
Fed rate futures traders cut bets after Powell's speech today, but see December cut still on the cards.
Short-term interest rate futures also fell after Powell's comments.
Powell added that the strength of the US economy gives the Fed the ability to make decisions carefully.
He pointed out that the labor market remained strong, and that inflation was on a downward path toward 2%. He also noted that the continued decline in the labor market made it unable to threaten to increase inflationary pressures.
The Fed chairman expects the PCE index to come in at 2.3% for October, up from September. The core index will rise to 2.8%.
He continued to repeat the Fed's commitment to reducing inflation, and said that the economy is not sending signals that would prompt the Fed to rush into making an interest rate decision, and it will move to the neutral zone for policy.
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