📣 Powell speaks: how the Fed sees the economy #green_lamp
Fed Chair Jerome Powell presented an updated view on the economy — the world has changed since 2020, and the Federal Reserve is restructuring its strategy. Here’s the essence without fluff:
🟠 The world is not the same — the macro environment is different, and previous recipes may not work
🟠 Real rates are higher, but inflation expectations are under control
🟠 Inflation has fallen from 7.2% to 2.2%, but the fight against it is not over
🟠 Such a ‘soft landing’ is rare in history, without rising unemployment
🟠 Risks of new supply shocks are increasing — global instability
🟠 The era of cheap money is in the past — low rates are no longer the baseline scenario
🟠 The goal is to keep inflation expectations at the 2% mark
🟠 The Fed's strategy for 2025 is almost ready, revising key formulations
🟠 The term ‘employment shortfalls’ will be rewritten
🟠 Communication needs to be clearer, especially amid uncertainty
🟠 It's necessary to explain to markets and society how difficult it is to make forecasts
🟠 All Fed strategy documents are being upgraded for new realities
🟠 Transparency and trust in the Fed's actions are a priority
In summary: The Fed no longer promises ‘cheap and stable’ — prepare for expensive money and flexible tactics.
