#PowellRemarks
Jerome Powell, the Chair of the U.S. Federal Reserve, delivered an important speech yesterday, where he provided clarifications on monetary policy and inflation. Here are more details about the speech and its impacts:
*Key Statements by Powell:*
- *Inflation*: Powell affirmed that the Federal Reserve is working to reduce inflation to its target of 2%. He noted that inflation is still slowly declining as a result of recovery from the major economic shocks that occurred in 2021 and 2022.
- *Interest Rate*: The key interest rate was lowered by 25 basis points to a range of 4.25%-4.5%. This decision reflects a monetary policy aimed at achieving economic stability while continuing to face inflation challenges.
- *U.S. Economy*: Powell indicated that the U.S. economy is doing very well, and there are no reasons to believe that a recession is more likely than usual.
*Impact of Powell's Speech on the Markets:*
- *Stocks*: Technology stocks rose after Powell's speech, while the Dow Jones Index declined. This reflects investors' expectations that monetary policy will remain accommodative to support economic growth.
- *Gold*: The price of gold fell below $1,800 per ounce. This may be a result of expectations for an increase in interest rates or an improvement in the U.S. economy.
- *Oil*: The price of oil rose after Powell's speech. This may be a result of expectations for increased demand for oil due to the improvement in the economy.