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Summary of Powell’s speech to the Fed
The US Federal Reserve cut interest rates by 25 basis points in its November decision, bringing interest rates down to 4.75%. The US Federal Reserve stressed its continued concerns about inflation rebounding despite its decline towards the targeted 2% levels.
The US Federal Reserve said that the labor market has been slowing recently and the unemployment rate has also risen, but it is still within a low range.
The Fed balanced in its statement between inflation risks and labor market risks and said that the committee is assessing the economic situation, taking these two factors into account with equal weight.
Investors believe that the US Federal Reserve will cut interest rates by 25 basis points at its December meeting before stopping in January to see the impact of the interest rate reduction campaign it led and to align its policies with the new economic policies of the new US President, Donald Trump, who defeated Kamala Harris and is expected to adopt a low-tax economic policy and impose tariffs on products imported from China and Europe and increase oil production in the United States, which will have a reaction in economic markets to the Fed’s assessment framework in 2025.
The US economy is strong and solid.
Inflation has clearly cooled.
The labor market is not a source of inflationary pressure.
The core CPI (excluding food and energy) remains elevated.
In the short term, the results of the US election and the new US president will have no impact on the US Federal Reserve’s monetary policy.
It is difficult to predict beyond the short term in economics.
It is natural for public policy and congressional policy to have an impact on the economy.
Bonds show expectations of economic growth. They do not indicate an expected rise in inflation.
We do not want to offer future visions, because there is a state of uncertainty about the future.
Since the September meeting until now, the economy has become stronger.
Summary of Powell’s speech to the Fed
