⏸The Fed keeps the rate at the same level of 4.5%

Previous: 4.5%

Expected: 4.5%

▶️Key points from Jerome Powell's speech:

▪️Jerome Powell confirmed the strength of the U.S. economy, noting that inflation is gradually approaching the target of 2%, although it remains relatively high.

▪️He emphasized that labor market conditions are balanced, with stable unemployment, indicating that the labor market is not contributing to inflation. Additionally, he assured that inflation expectations remain firmly anchored.

▪️Powell stated that while the recent rate cut was appropriate, there is no urgency for further cuts as the economy remains resilient.

▪️Looking ahead, he confirmed that the Fed will conduct five-year planning in 2025 but indicated that changing the inflation target of 2% is not under discussion.

▪️In response to a question about recent calls from Trump for rate cuts, Powell declined to comment, stating that the Fed will focus on its work. He also noted that he had not received any direct communication from him.