Jerome Powell's speech, a federal preparation system, began with the intentional pause of the Fed and reducing interest rates. Trump fits 100 % of Powell's responsibility for market collisions and then brings out a long knife. Please prepare.
“The economy is strong. At a FOMC press conference in Washington, Powell states:” As a whole, a wide range of indicators suggests that the conditions in the labor market are very imbalanced. “
The Fed is at least stable so far, as the economy has a company, the labor market is stable, and inflation has refused to retreat.
Bitcoin dropped by 1.2 % in the news, and the total market capitalization of ciphers has decreased by 2.6 %.
Federal preparation system Jerome Powell's speech
Today, the Federal Open Market Committee (FOMC) has announced that it has a federal fund rate, stabilizing between 4.25 % and 4.5 %. This decision temporarily stopped the rate reduction, which started last year, and reduced borrowing costs.
“Because the economy remains powerful, you don't have to hurry to adjust your policy attitude,” Powell said.
Powell also emphasized his attention and data first prospects in his remarks after the meeting.
At the FOMC meeting, inflation is a concern.
The first question for Jerome Powell was the impact of President Donald Trump's interest rate after demanding the Fed Reduction rate.
Powell said, “I have no comments about what the president said. No contact [with the president]。 “
Trump demanded Fed to keep reducing interest rates …
However, there is a 98 % chance that the Fed ignores his demands today. pic.twitter.com/twxbobmw1p
-Polymarket (@polymarket) January 29, 2025
Last year's federal government's fierce pace was a bit sticky, but stubbornly stopped over the target. If the reduction rate is too fast, there is a risk of relapsing the pressure of the Fed to suppress it.
“Inflation has not died yet,” said Villanova's economist, Erasmus Carcinging, in an interview. “For now, it seems wise to keep the cut from the table.”
The potential movement from President Donald Trump's administration complicates this calculation. Customs duties, overhaul spending, and the crackdown on immigrants threaten to confuse the financial plan.
Following the speech of Jerome Powell, the federal preparation system, an “waiting” approach
Fed's latest stance emphasizes the return of data -dependent mantra. In the latter half of 2024, inflation delayed and the cooling from the high labor market declined, the authorities seem to have stable rates until more clear economic indicators appear.
The quantitative tightening is continued in the background, and the long -term binding yield is further pressure. At the same time, the balance sheet of the Fed has been greatly reduced to reduce footprints in the credit market.
Most economists predict that the Fed will hold a stable rate through the March meeting, and the potential reduction has been delayed until May. For now, patience is the name of the game. Powell must balance inflation, labor market strength, and external shocks from new federal policies.
The story of the Federal Reserve Interest Policy 2025 reflects the central bank's intentions on economic turbulence navigation while protecting price stability and employment. Focusing on speculation data, the measured approach of the Fed is guaranteed to be ready to adapt as the economic situation evolves.
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After the FOMC conference in 2025, the posttrump blamed Jerome Powell's speech.
