📢🇺🇸 The Fed Chairman, Jerome Powell, shared the following points:
-*Economy* : Strong, stable labor market, but high inflation (PCE at ~2.5% in December). Household consumption shows signs of slowing down.
-*Monetary Policy* : The Fed is slowing its quantitative tightening (QT) and taking its time on rates, awaiting more clarity. Uncertainty remains high, with no predefined trajectory.
-*Markets* : The labor market is not fueling inflation. Money markets are tighter, but reserves remain abundant.
-*Inflation* : Increase related to tariffs, likely temporary. Long-term target: 2%. Increased monitoring of inflation expectations.
-*Position* : Easing if the labor market weakens, restrictive policy if the economy remains resilient. The current policy is deemed "well-calibrated".
-*Risks* : Trade tensions delay inflation control. Low recession risk despite uncertainty.
