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:
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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.
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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.
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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.
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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"
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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.
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Within the FOMC, the number of members considering that rate hikes are just as likely as cuts has increased.
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The guidance on interest rates could well change at the next meeting.
Daily summary: Powell remains in Fed 🏦 Oil skyrockets 🛢️ 🚀
⬇️US500 Sees Largest Correction Since March
BREAKING: Fed keeps interest rates unchanged 📌 EURUSD extends below 1,1700 📉
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