Fed Chair Powell (Q&A), asked about conditions for adjusting policy, says Fed has to wait and see, will learn a lot by the next meeting, must see how the outlook evolves on the Middle East

• Fed did talk about alternative scenarios, but he wouldn't bring that in here, says it is very uncertain and cannot assume one way or another
• US economy has been strong enough to look through a whole bunch of challenges

Powell's remarks suggest a cautious approach from the Fed, indicating they prefer to assess evolving circumstances, particularly regarding geopolitical tensions in the Middle East before making policy adjustments. This dovish tone may temper expectations for immediate rate changes and could influence market sentiment across USD pairs and fixed income assets, highlighting a wait-and-see approach in response to economic conditions.