BREAKING: USD weakens during Powell's speech

Powell speaks today at an event organized by the Economic Club of Washington. His statement was strongly expected by the markets due to possible suggestions regarding tightening path.

The message from last week's FOMC was that the disinflationary process has begun, but there is still a long way to go.
We probably need to do further interest-rate increases.
The process is going to be bumpy, FED will need further rate increases.
The strong jobs report shows you why we think this will be a process that takes a significant period of time.
If data continues to come in stronger than expected, rates would be raised further.
The Fed anticipates that further rate increases will be necessary, but they have not yet reached a sufficiently restrictive level.
Powell expects that 2023 to be a year of significant declines in inflation.

It was enough for investors to sell off the dollar. Gold also gains, while Wall Street futures moved to session highs.

Bears regain some control after Powell said, that if strong labor market reports or higher inflation reports continue, the Fed may need to raise rates more than is currently priced in.

EURUSD pair jumped above resistance at 1.0731 after Powell’s remarks. Source: xStation5

2 January 2026, 2:45 PM

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BREAKING: USD weakens during Powell's speech

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