CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Powell Press Conference: Key Takeaways

20:02 22 September 2021

The press conference of FED chairman Jerome Powell is heading towards its end.

  • Here are they key takeaways from the opening statement:
  • The Fed's actions are aimed at supporting the economy until the recovery is complete
  • Growth should continue at a strong pace, albeit slightly lower than previously expected
  • Sectors that have been hit by the pandemic have little rebound
  • Conditions in the labor market are improving, employment in August fell in terms of the pace of growth
  • The Fed will react if inflation remains higher than expected
  • Inflation will be elevated, but will decline towards next year
  • Interest rates will not be raised until the labor market reaches full employment as determined by the Fed
  • A gradual tapering process that concludes around the middle of next year is likely to be appropriate

Below we present some key takeaways from the Q&A session:

  • Inflationary conditions are reached, now the Fed wants to meet the goals related to the labor market (but at the same time does not say that the inflation targets have exceeded expectations and prices need to be cooled down)
  • When the progress of both Fed goals is visible, then the decision will be made when to start the taper, does not rule out the next meeting
  • Many Fed members believe that the improvement in the labor market is already significant, Powell believes that the progress is not enough
  • Powell "guesses" that the tapering could start early next year

It seems that the Fed sees a chance to announce a tapering at the next meeting (of course, the September data will be of key importance here).

Comments regarding the tapering cause the dollar to strengthen and the gold to weaken. Source: xStation5

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back