A conference with Fed Chairman Jerome Powell has just begun. gun. Below are the most important comments made by the banker:
- The economy is in a solid position.
- Inflation is somewhat above the target.
- Despite uncertainty, economy remains in solid position.
- The current stance of policy leaves us well-positioned to respond in a timely way.
- Indicators suggest economic growth has moderated.
- Labor market conditions are broadly in balance and unemployment remains low. A wide set of indicators suggest that the job market is near maximum employment.
- Tariffs have exerted pressure on some goods but wider impact uncertain.
- I expect PCE up 2.5% and core up 2.7% in the 12 months through June. Tariffs are pushing up some goods prices. Tariffs are pushing up some goods prices. Most measures of longer-run inflation expectations are consistent with the Fed's goal.
- A reasonable base case is a short-lived tariff inflation impact.
- On track to wrap up policy review by late Summer.
- We have made no decisions about September meeting.
- Would characterize policy as modestly restrictive
- The main number you have to look at is the unemployment rate.
- Economy Calls For Modestly Restrictive Stance For Now
- I expect to see more tariff impacts in inflation data.
- Could say Fed looking through inflation by not hiking. (very hawkish remark)
- The next steps we take are likely to be closer to neutral.
EURUSD is extending intraday downside during the Powell Conference.
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Source: xStation
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