🔴 Fed Conference: Powell remains as a governor (LIVE)

The Federal Open Market Comitee decided to keep US interest rates unchanged within 3.5-3.75% range. The last conference of Jerome Powell as a Fed Chair, where he will justify the decision, is about to start. Below you can find the most important takeaways from Powell's statement and Q&A session.

Key points raised by Jerome Powell, Chair of the Fed:

• The US economy is experiencing sustained growth. Job creation has remained weak, but the unemployment rate has stayed unchanged. Events in the Middle East are creating a high level of uncertainty and risks in both directions for the economy and the Fed’s mandate.

• The short-term inflation outlook has deteriorated, mainly due to rising energy prices. Longer-term inflation expectations remain aligned with the Fed’s 2% target.

• Monetary policy is not following a predefined path and future decisions will be made based on available data and on a case-by-case basis, meeting by meeting.

• Powell will not leave the Fed until the Department of Justice investigation is fully concluded. He will remain in the role of Chair beyond 15 May, "keeping a low profile"

• The Fed continues to expect that Trump’s tariffs will have a one-off effect on prices, without generating long-term inflationary pressure. Tariff-related inflation is expected to ease over the next two quarters.

• Within the FOMC, the number of members considering that rate hikes are just as likely as cuts has increased.

• The guidance on interest rates could well change at the next meeting.