The most important statements of the President of the US Federal Reserve

Wednesday, July 27, 2022 - 19:18
Point Trader Group
The most important statements of the President of the US Federal Reserve

The Fed's number one goal is to lower inflation, and we have the tools to do that.

Despite the recent decline in the price of commodities, their strong rise before that still leaves a shadow on the high inflation rates.

Our goal remains to return the inflation rate to our 2% target.

We are working to achieve price stability.

We will not hesitate to take a step larger than 75 basis points if we need to.

We'll make our decision on the September rate hike based on the data, but we don't rule out a 75bp hike!

We are watching with interest the slowdown in the US economy and the effects of our decision to raise rates.

We will wait for the inflation data for July and a slowdown in the inflation data.

Past inflation data has been worse than our expectations.

At the end of the year we expect interest rates to reach between 3 and 3.5%.

The United States is not currently experiencing a recession

Many sectors of the economy are doing well

We could raise the rate again, but that's not an option we've made, but we'll be guided by the data

It is important that we tackle inflation now and get the job done

Demand slowed in the second quarter

We continue to see that the best evaluator of inflation is the US annualized PCE price index.

We don't see any scary signs that the US economy is currently in recession.

At some point it will be better to drop interest rates, but now our goal is to reduce inflation.

Job growth and salary levels are still strong, not indicating that the economy is in a recession.

Recession industry is not among the targets of the US Federal Reserve.

A slowdown in the economy is needed, but I will not comment on “recession expectations”.

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