The long-awaited text of Powell’s speech has just been released. At press time the Fed Chair is delivering his speech. Below we present key bullet points:
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It could be appropriate to begin tapering this year
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Tapering doesn’t carry direct rate-hike timing signal
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What the Fed does with bond purchases has nothing to do with the timing of rate hikes
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Inflation has reached the threshold that allows the tapering process to begin
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Clear progress on job-market recovery has been noticed by the Fed
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The speed with which we’ve recovered has beyond our expectations
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The unemployment rate is still too high, and it exaggerates the state of the labor market recovery
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The Federal Reserve expects to see additional progress on the job market recovery in the coming months
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Monetary policy is still “ideally positioned” to help the economy recover
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The Fed will keep an eye on developments with the delta coronavirus variant.
To wrap things up: The Fed hasn’t announced QE tapering, but hinted that it could be launched this year. Also, the Fed still clearly ignores elevated inflation, saying that it should be 'transitory'.
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Create account Try a demo Download mobile app Download mobile appUS stock indices hit fresh all-time highs while the US dollar slumped. Gold and silver prices jumped after Powell's remarks.
EURUSD jumped to 1.18 during Powell's speech. The USD tanked across the board. Source: xStation5
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