Fed Chair Powell (Q&A) says SEP is never locked in, people are happy to change their forecasts; forecasts are subject to high degree of uncertainty

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Fed Chair Powell (Q&A) says lots of ways oil prices can feed into prices, can leak into core; will have to wait and see

Fed Chair Powell (Q&A) says real wages have been rising, will take some years of real earnings gains for people to feel good again

Fed Chair Powell (Q&A) says SEP is never locked in, people are happy to change their forecasts; forecasts are subject to high degree of uncertainty

Fed Chair Powell (Q&A) says have slightly more confidence that tariff inflation will come down in the middle of the year

Fed Chair Powell (Q&A) says tariffs should in theory be one-time effect, the theory is probably right, but the time it takes to get through the economy is uncertain

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Context

Fed Chair Powell's comments indicate a flexible approach to monetary policy, suggesting that the Fed is open to adjusting its forecasts in light of uncertainty. This could signal to markets that the path of future rate hikes remains data-dependent, influencing expectations around the USD's strength and fixed income markets, particularly if participants perceive a dovish tilt.

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