#PowellRemarks
✍️ What did Jerome Powell say?
Jerome Powell, the Chairman of the U.S. Federal Reserve (the Fed), recently made important statements that affected financial markets.
- Key points:
- Inflation remains high: Powell indicated that inflationary pressures are still present, and it is necessary to ensure a sustainable decline before making any decisions.
- Interest rate cuts are not guaranteed: He clarified that interest rate cuts will only occur when there is "clear evidence" of inflation declining towards the target (2%).
- The labor market is strong but moderate: He noted that the labor market remains robust but is showing some signs of slowing down.
- No intention to raise interest rates currently: The Fed is adopting a "wait and see" policy, keeping rates elevated for a longer period if necessary.
- Impact of the statements on the market:
- Stock markets: Experienced volatility after the statements due to the uncertainty of the timing of interest rate cuts.
- Gold and Bitcoin: Recorded slight increases due to investors' concerns about the continuation of tight policy.
- Bond yields: Stabilized relatively as markets await upcoming inflation figures.
✍️ Powell's statements were cautious, emphasizing that the Fed remains committed to caution in the battle against inflation. Any upcoming decisions will be based on data, not forecasts.
