Jerome Powell's Key Points
▪️ The economy overall remains resilient.
▪️ Today's decision reflects confidence that stability in the labour market can be maintained.
▪️ Inflation has fallen significantly, but still exceeds the target level.
▪️ The labor market has weakened and no longer looks so overheated.
▪️ We are ready to adjust monetary policy if necessary.
▪️ If the economy remains stable, we can slow the pace of rate cuts, but we are also prepared to respond to a deterioration in the labor market.
▪️ There is no indication in our forecasts that we are ahead or behind schedule.
▪️ We believe the 50 basis point cut was the right decision, and future decisions will be made as new data becomes available.
▪️ I am pleased with the 50 basis point rate cut.
▪️ The labor market remains in good condition, and we strive to maintain it that way, as well as overall economic stability.
▪️ The current decision should not be seen as a signal of a new pace of rate cuts.
▪️ The rise in unemployment is partly due to increased immigration.
▪️ There is no need for further cooling of the labor market to reduce inflation.
▪️ In my opinion, we will not return to a low neutral rate.
▪️ No, we are not declaring victory over inflation. The Fed aims for inflation to stabilize at around 2% for an extended period of time.
🇺🇸 Key points from the FOMC statement:
▪️ The Fed is confident that inflation is gradually approaching the target level.
▪️ The Fed plans further rate cuts, while closely monitoring economic indicators.
▪️ Two 25 basis point cuts are expected in 2024.
▪️ A decline of 100 basis points is forecast in 2025 and 50 basis points in 2026.
It's happened: the first rate cut since 2020, but the most interesting is yet to come 🔼