Content of the FED Chairman's speech at 19:40 on May 15.
1. Interest rates remain stable
The Fed continues to maintain interest rates in the range of 4.25% - 4.50%, marking the third consecutive time this interest rate level has not changed. Mr. Powell emphasized that adjustments to interest rates will be based on core economic data, especially indicators of inflation and economic growth.
2. Inflation cooling but not yet at target
The Consumer Price Index (CPI) for April rose 2.3% compared to the same period last year, the lowest annual increase in 4 years. However, core inflation remains at 2.8%, higher than the Fed's 2% target. This indicates that inflation is decreasing but not enough for the Fed to change its current monetary policy.
3. Impact of tariff policy
The Fed is monitoring the impact of tariff policy on inflation and economic growth. Despite concerns from businesses and households, there has not been a clear indication in the data showing that they have pulled back on spending or investment due to the consequences of tariff policy.
4. Impact on financial markets
The reaction of financial markets after Mr. Powell's speech has been quite stable. Gold prices have maintained a decline as expectations for the Fed to cut interest rates have eased and demand for safe havens has decreased. The cryptocurrency market, particularly Bitcoin, may continue a trend of accumulation or slight increase in the short term, but it is still necessary to closely monitor market developments following the Fed Chairman's speech.
Crypto God.
