Fed Chair Powell (Q&A) reiterates Fed is committed to bringing inflation back down to 2% sustainably
Fed Chair Powell's reiteration of the commitment to sustainably return inflation to 2% signals continued vigilance from the central bank, emphasizing a measured approach to avoid economic disruption.
Fed Chair Powell (Q&A) says the Committee's centre is moving towards a more neutral bias
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Fed Chair Powell (Q&A) reiterates Fed is committed to bringing inflation back down to 2% sustainably
Fed Chair Powell (Q&A) says Fed tries to be a good steward of people's money; Governor Waller and Reserve Bank Presidents are passionate about that
Fed Chair Powell (Q&A) says there are widespread concerns on the Committee that political attacks will continue, and that would be a problem
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- Events keep happening which drive up costs; best thing the Fed can do is use tools to guide inflation back to target
- Getting to target quickly could be costly
- Fed must get it done over time, doing the least amount of damage
- Reiterates growth is solid; consumer spending is hanging in well
- Also notes insatiable appetite for data centres
- Unemployment rate is pretty close to natural rate
- Does not feel like a good labour market to some due to low quits and low highers with no new job creation
- It is an unusual, uncomfortable balance in the labour markets
- Inflation is the thing to work on; thinks tariff inflation should subside this year, should start happening soon
- Policy in a good place to hold and await developments
His insights on the labor market and inflationary pressures indicate the Fed’s balancing act, reassuring markets that while growth remains solid, they must remain patient as tariff-related inflation is anticipated to ease. This dovish stance could influence rate expectations and cross-asset performance, impacting the USD and fixed income markets.
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