Last minute: Fed President Jerome Powell’dan live broadcasts came live broadcast!

FED President Jerome Powell speaks at the session of the Senate Finance, Housing and Urban Affairs Committee, here is important than his speech:

• Long -term inflation expectations appear solid.
• FED’s frame assessment will not focus on the inflation target and the inflation target will remain at 2 %.
• Current policies are completely ready to cope with risks and uncertainties.
• If the economy continues to be strong and inflation does not approach 2 %, the policy can be sustained for a longer period of time. If the labor market is unexpectedly weakened or inflation decreases more than expected, the policy can be moderately loosened.
• In general, the US economy is strong and the inflation rate is close to 2 %target, but we are still a little high.
• The unemployment rate is low and stable, the labor market has not become strong and has not become a source of inflationary printing.
• Inflation has approached 2 %, our long -term target, but is still somewhat high.
• The latest indicators show that economic activity continues to expand stable.
• Activities in the housing sector seem to have stable.
• We continue to focus on achieving our binary authority targets in the form of maximum employment and stable prices.
• Labor market conditions continue to remain stronger from previous overheating situations and remain strong.
• The labor market seems to have stable. The unemployment rate has remained constant since mid -last year and continues to be low.
• Nominal wage increase has slowed down last year and a wide range of indicators shows that labor market conditions are roughly balanced.
• The labor market does not constitute an important source of inflationist printing. The strong labor market conditions in recent years have helped to narrow the existing difference between different population groups in terms of employment and income.
• Inflation has decreased significantly in the last two years, but personal consumption expenditures are still slightly above 2 %, our long -term target.
• In the long run, in addition to a wide range of surveys consisting of households, businesses and predictions, indicators obtained from financial markets reflect, as well as inflation expectations seem to have been well fixed.
• We continue to reduce our securities assets.
• Considering that our current policy stance is significantly less tight than previous levels and the economy remains strong, we do not need to hurry to change our policy posture.
• The Federal Open Market Committee will evaluate the scope and timing of the additional arrangements to be made in the target range of the federal fundal ratio, and evaluate incoming data, changing appearance and risk balance
• Powell Senate testified in front of the Finance, Housing and Urban Affairs Committee and submitted the Central Bank’s six -month monetary policy report to the Congress. In his speech, Powell pointed out his determination to reach the Fed’s dual duty in the form of maximum employment and stable prices, while emphasizing the progress and ongoing difficulties in the economy.
• Powell said that the US economy remained strong in 2024 and expanded by 2.5 %due to resistant consumer expenditures of gross domestic product (GDP). Investment in equipment and intangible assets decreased in the fourth quarter, while the general investment remained intact throughout the year. The housing market, which faced difficulties in the mid -2023, has stable since then.
• He announced that the labor market conditions have cooled out of overheated, but remain strong. In the last four months, the an average of employment in the payroll in the payroll of the payroll was 189,000, while the unemployment rate remained constant at 4 %. The increase in wages was moderate and the employment-employment deficit narrowed inflationist pressures. Powell said that the labor market is generally balanced and does not contribute to significant inflationary concerns.
• Although inflation has been significantly moderated in the last two years, it continues to follow the Fed’s 2 %target. Personal consumption expenditures (PCE) price index increased by 2.6 %in the 12 -month period in December, while the core PCE, which excludes food and energy, increased by 2.8 %in the same period.
• Powell, households, businesses and financial market indicators, as the surveys showed the strength of long -term inflation expectations, he said.
• The Federal Open Market Committee (FOMC) responded to these economic changes by adjusting their policy stance. Since September, the FED has reduced its interest rates after 14 months, which kept the federal fund rate between 5.25 %and 5.5 %.
• Powell described this re -adjustment, considering the progress recorded in controlling inflation and cooling of labor market conditions.
• “While our policy stance is currently less restrictive and the economy continues to remain stronger, we don’t have to hurry to adjust our policy stance, Pow said Powell, who warned that the monetary policy can undermine the progress in inflation very quickly, and that moving very slowly may drown economic growth and employment. found.
• Powell will continue to evaluate the data and economic risks before making more policy adjustments. If inflation continues to be high, FED may continue to restrict policies for a longer period of time.
• On the contrary, if economic growth unexpectedly weakens, the Central Bank is ready to relax policy.
• Powell also announced that the FED’s strategy, including the evaluation of tools and communication practices, has been periodically reviewed.
• The review is expected to be completed at the end of the summer, including access to public through activities such as Fed Listens and a research conference to be held in May. The 2 %inflation target will remain unchanged within the scope of review.
• The risk appearance of budget deficits and inflation expectations is one of the main factors in the rise of long -term interest rates.
• Long -term interest rates are determined according to the supply and demand in the bond market.
• According to the law, the President cannot dismiss the Fed Board Members.
• It is not possible to give a definite figure, there are many ways to go.
• It is not yet clear which customs tariff policies will be implemented and the specific effect is still unknown.

*It is not an investment advice.