#btc Final Summary of Powell's Key Points

1. Monetary Policy and Waiting:

• The Fed is well positioned to wait before making new interest rate decisions.

• No immediate changes until the economic picture becomes clearer.

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2. Inflation and Tariffs:

• Higher tariffs could push inflation higher more persistently than expected.

• Inflation rose 2.3%, and core inflation was 2.6%.

• The Fed is seeking to prevent this inflation from becoming permanent.

• Its mission is to ensure that this increase does not recur.

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3. Economic Growth:

• Growth in the first quarter of 2025 will slow compared to last year.

• Strong imports are negatively impacting GDP growth.

• Government policies could push the Fed away from its targets this year.

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4. Labor Market and Employment:

• The labor market is strong and balanced.

• Wage growth is continuing, and unemployment is stable.

• Immigration has helped support growth over the past two years.

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5. Supply Chains and Trade Policies:

• Auto companies will suffer prolonged supply chain disruptions.

• New trade policies remain unclear and increase uncertainty.

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6. Financial Markets:

• Markets Collapsing? Natural! Powell: What's happening is expected, and we won't intervene even if stocks collapse.

• The Federal Reserve is "fiscally comfortable" and ready to meet the needs of global central banks.