Powell's most important statements fomc press

Wednesday, June 12, 2024 - 19:05
Point Trader Group

Fed Chairman Jerome Powell is now speaking out, after members of the Open Market Committee expected a rate cut of only 25 basis points this year. While the Federal Reserve will reduce interest rates by 100 basis points over the next year, instead of 75.

We are in a position to adjust monetary policy whenever necessary

If the economy's ability to create jobs declines strongly or inflation declines at an accelerated pace, the Fed's expectations are flexible, and this will be taken into account in the decision-making process.

The Federal Reserve Chairman believes that inflation is in a good position with the personal consumption expenditures index reading at 2.6-2.7%.

We do not have strong confidence in the forecast

Fed expectations are not the plan but could be adjusted

We remain attentive to inflation

It is true that inflation rates have declined, but they are still very high

The American economy is still growing at a solid pace, and we do not rule out keeping interest rates high for a longer period if necessary.

We will not reduce #interest rates unless we are sure that inflation returns to our target of 2%.

The labor market is still strong and affects #inflation rates and may contribute to raising inflation rates again.

The data seems reassuring, with jobs declining, wages declining, unemployment rising, and inflation declining compared to what it was before

He added that the Fed still needs more data consistent with its expectations to increase confidence that inflation is moving towards 2%.

It is true that inflation rates have declined, but they are still very high.

The Fed's forecast is not a plan, and it can be modified

We are conservative with regard to our inflation expectations

If we get more CPI readings like today we would welcome them

Policy easing is unlikely until inflation moves towards 2%.

The Federal Open Market Committee reduced interest rate hike expectations and the number of times by a third this year

It was raised by 25% next year

It also raised its expectations for the inflation rate by the end of the year from its previous expectations

Meaning, in a simplified way, that the committee reduced the pace of interest cuts this year

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