Fed Chair Powell (Q&A) says we don't know how big the energy shock will be, way too early to know; policy is in a good position to wait and see

Fed Chair Powell's comments suggest caution regarding the future impact of the energy shock, indicating that the Fed is not currently compelled to act aggressively. This "wait and see" approach reinforces a potential dovish stance, which may lead traders to reassess expectations for future rate hikes and contribute to a weaker USD in the short term as markets digest the uncertainty.