๐ฃ๏ธ๐บ๐ธ Federal Reserve Chair Jerome Powell reveals details about future monetary policy ๐ฑ
"The Fed needs to see inflation fall more before cutting interest rates..."
Markets record a slight dip, with $BTC , $ETH , and $SOL falling. Hopes for early interest rate cuts have largely been destroyed.
Hereโs the summary:
๐ค๐บ๐ธ Jerome Powell addressed the following points:
๐ค๐บ๐ธ We need to see more progress in the battle to curb inflation.
๐ค๐บ๐ธ The Federal Reserve must be certain before making any decisions about lowering interest rates.
๐ค๐บ๐ธ If the labor market weakens unexpectedly, it will prompt us to act.
๐ค๐บ๐ธ We are aware of the risks of starting too early or too late regarding when to cut interest rates.
๐ค๐บ๐ธ Inflation in the services sector is often resistant to decline.
๐ค๐บ๐ธ Wage increases are moving on a downward path toward more sustainable levels.
๐ค๐บ๐ธ Wage increases are still above equilibrium levels.
๐ค๐บ๐ธ Inflation could return to the Federal Reserveโs 2% target by late next year or possibly the following year.
๐ค๐บ๐ธ When asked about current political situations and their impact on monetary policy, Jerome Powell strongly supported the independence of the Federal Reserve in the United States.
๐ค๐บ๐ธ The U.S. government deficit is extremely large and its trajectory is unsustainable. Sooner or later, this situation will require us to address it, and itโs better to do so sooner rather than later.
๐ค๐บ๐ธ Most people believe we won't return to an era of extremely low rates, but no one knows for sure.
๐ค๐บ๐ธ I would be grateful if the unemployment rate in the United States stabilizes at the right levels.
๐ค๐บ๐ธ The 4% unemployment rate is still very low.
๐ค๐บ๐ธ Inflation should be at or below 2% a year from now.
