Strong move in interest expectations after Fed Chairman’s comments By Investing.com

Investing.com – Fed Chairman Jerome Powell said that the Fed is in no rush to cut rates and is confident that the path of inflation will continue to decrease towards the 2% target.

Among Powell’s most important statements was his speech about the independence of the Federal Reserve, where the head of the US Federal Reserve emphasized the independence of the Federal Reserve and that it does not work for the benefit of any party. The Fed’s independence guarantees that fiscal policy will not be reviewed or its decisions reversed.

Traders and sellers in the futures market are reducing bets on a US Federal Reserve rate cut after Jerome Powell’s speech, but most remain in line so far.

Below is a snapshot of expectations for Fed decisions in the coming months.

Jerome Powell’s statements:

• When speaking about the policies of the new President of the United States of America, Jerome Powell said that it is still too early to assess the impact of Trump’s economic policies.
• Powell said that monetary policy takes a long time to produce the economic effects, and he said that the Fed and its members will be more careful and slow when making any changes in their policy until they have some certainty. about the economic future and its implications.
• Powell believed there was enough time for them to assess all the economic implications of the developments before making any response.
• Speaking about debt, Powell said, “The current debt trajectory is unsustainable and we need to address this sooner rather than later.”
• Powell said that if any event occurs that affects economic stability, the Fed will use its emergency tools quickly.