{"id":42444,"date":"2025-05-15T16:04:32","date_gmt":"2025-05-15T13:04:32","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=42444"},"modified":"2025-05-15T16:04:32","modified_gmt":"2025-05-15T13:04:32","slug":"powell-signals-a-new-era-in-monetary-policy","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/powell-signals-a-new-era-in-monetary-policy\/","title":{"rendered":"Powell Signals a New Era in Monetary Policy!"},"content":{"rendered":"<p class=\"\" data-start=\"216\" data-end=\"553\">Global markets turned their attention to the <strong data-start=\"261\" data-end=\"268\">Fed<\/strong> following the inflation data. The awaited statement arrived, and <strong data-start=\"334\" data-end=\"341\">Fed<\/strong> Chair <strong data-start=\"348\" data-end=\"365\">Jerome Powell<\/strong> delivered notable messages. Although he refrained from directly commenting on the <strong data-start=\"448\" data-end=\"465\">interest rate<\/strong> path, he signaled a significant reassessment of the <strong data-start=\"518\" data-end=\"525\">Fed<\/strong>\u2019s monetary policy strategy.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/powell-signals-a-new-era-in-monetary-policy\/#Average_Inflation_Target_on_the_Table\" title=\"Average Inflation Target on the Table\">Average Inflation Target on the Table<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/powell-signals-a-new-era-in-monetary-policy\/#Revisions_in_Fed_Communication_on_the_Agenda\" title=\"Revisions in Fed Communication on the Agenda\">Revisions in Fed Communication on the Agenda<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/powell-signals-a-new-era-in-monetary-policy\/#Silence_on_the_Interest_Rate_Path\" title=\"Silence on the Interest Rate Path\">Silence on the Interest Rate Path<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"555\" data-end=\"596\"><span class=\"ez-toc-section\" id=\"Average_Inflation_Target_on_the_Table\"><\/span>Average Inflation Target on the Table<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"598\" data-end=\"955\"><strong data-start=\"598\" data-end=\"608\">Powell<\/strong> stated that the idea of a &#8220;moderate overshoot of inflation following weakness&#8221; has become obsolete. He indicated that strategies such as average inflation targeting could be reconsidered. This evaluation is interpreted as a sign that the shifting global economic dynamics in the post-pandemic era may lead to permanent changes in monetary policy.<\/p>\n<hr \/>\n<p data-start=\"957\" data-end=\"1139\"><strong><em>You Might Be Interested In: <a href=\"https:\/\/coinengineer.net\/blog\/elon-musk-talks-about-the-name-of-a-new-memecoin\/\">Elon Musk Talks About the Name of a New Memecoin!<\/a><\/em><\/strong><\/p>\n<hr \/>\n<p class=\"\" data-start=\"957\" data-end=\"1139\">Emphasizing that we may be entering a period of more frequent supply shocks, <strong data-start=\"1034\" data-end=\"1044\">Powell<\/strong> noted that this situation brings with it the need for new flexibility in the policy framework.<\/p>\n<h2 data-start=\"1141\" data-end=\"1193\"><span class=\"ez-toc-section\" id=\"Revisions_in_Fed_Communication_on_the_Agenda\"><\/span>Revisions in Fed Communication on the Agenda<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"1195\" data-end=\"1451\">The <strong data-start=\"1199\" data-end=\"1206\">Fed<\/strong> Chair also stated that changes to the institution\u2019s communication style and strategic messaging could be on the table. He emphasized that the definitions used in relation to employment shortfalls and price stability goals need to be reassessed.<\/p>\n<p class=\"\" data-start=\"1453\" data-end=\"1576\">These statements indicate that the <strong data-start=\"1488\" data-end=\"1495\">Fed<\/strong> continues its effort to adapt its current policy framework to future conditions.<\/p>\n<h2 data-start=\"1578\" data-end=\"1615\"><span class=\"ez-toc-section\" id=\"Silence_on_the_Interest_Rate_Path\"><\/span>Silence on the Interest Rate Path<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"\" data-start=\"1617\" data-end=\"1913\">One of the most striking aspects of <strong data-start=\"1653\" data-end=\"1663\">Powell<\/strong>\u2019s speech was the lack of any comment on the short-term economic outlook or the <strong data-start=\"1743\" data-end=\"1760\">interest rate<\/strong> trajectory. This is interpreted as a conscious decision by the <strong data-start=\"1824\" data-end=\"1831\">Fed<\/strong> to maintain its data-driven approach and avoid giving a clear directional signal.<\/p>\n<hr \/>\n<p data-start=\"1617\" data-end=\"1913\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global markets turned their attention to the Fed following the inflation data. The awaited statement arrived, and Fed Chair Jerome Powell delivered notable messages. Although he refrained from directly commenting on the interest rate path, he signaled a significant reassessment of the Fed\u2019s monetary policy strategy. Average Inflation Target on the Table Powell stated that<\/p>\n","protected":false},"author":28,"featured_media":29480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,657,2],"tags":[15868,1737,15879,640,15871,15874,15869,15877,15875,15867,15876,2345,15872,10243,2302,15878,15873,2297,15870,644],"class_list":["post-42444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-news","category-en","category-news","tag-average-inflation","tag-central-bank","tag-central-bank-signals","tag-fed","tag-fed-communication","tag-fed-speech","tag-fed-strategy","tag-fed-update","tag-inflation-analysis","tag-inflation-target","tag-interest-rate-outlook","tag-interest-rates","tag-macro-outlook","tag-market-reaction","tag-monetary-policy","tag-monetary-strategy","tag-policy-framework","tag-powell","tag-supply-shocks","tag-us-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Powell Signals a New Era in Monetary Policy! - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/powell-signals-a-new-era-in-monetary-policy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Powell Signals a New Era in Monetary Policy! - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Global markets turned their attention to the Fed following the inflation data. 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