What Powell Said

FED Chairman Powell insisted that he would not talk directly about economic policies in the interview.

He said that 2% is valid for inflation targets, but they will not wait for inflation to fall to 2% for interest rate cuts.

He said that he would like to see strong data indicating that the decline in inflation will continue for interest rate cuts, and that they have started to see this data recently.

Therefore, the expectation of reducing interest rates in September has become stronger. However, there is a group of people who expect the FED to start reducing interest rates in July.

Personally, I do not expect an interest rate cut in July because the employment data did not look too bad, but let's say they started the interest rate cut at the meeting in July, it would benefit all of us.

It is now necessary to focus on employment data carefully. If unemployment starts to increase unpredictably, there may be a fear of recession, and we will see the negative effects of this (temporarily).

Via: CryptoPNZ