What Did FED Chairman Powell Discuss in Live Broadcast?

Fed Fell Silent Ahead of Powell’s Speech at Spelman College!

Fed fell silent before the interesting announcement on December 14, focusing on Powell’s speech at Spelman College on Saturday. Powell’s words were of a nature to eliminate uncertainties about economic policies. Here are some notable statements from Powell’s speech:

• The Fed is ready to tighten more if necessary.
• It’s too early for policy relaxation, there is no room for speculation.
• FOMC is exhibiting a careful approach as risks are balanced.
• Significant progress has been made in the fight against inflation.
• An interest rate hike option is open to reduce inflation.
• It’s too early to say whether the monetary policy is restrictive.
• Core inflation is high, it needs to be reduced.
• The Fed has maintained its credibility in fighting inflation.
• US fiscal policy is unsustainable in the long term.
• The policy rate is in the restrictive zone.
• Economic uncertainty is “unusually high.”

Among the points, Powell emphasized are key issues such as inflation, interest rate policy, and economic uncertainty. These words provide an important guide to understanding the Fed’s policy approach and economic forecasts.

Recent economic data show that economic momentum slowed in the fourth quarter, the labor market cooled, and inflation slowed. This situation has created a disagreement among markets and Fed officials on economic forecasts.

According to the CME FedWatch Tool, the probability of the interest rate being kept constant as a result of the meeting was measured as 96.1%. However, Powell’s speech and the subsequent roundtable meeting will be decisive in how this rate will shape up. This uncertainty in the economic outlook between investors and policymakers is closely followed in financial markets.

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