US Federal Reserve Governor Jerome Powell’s Press Conference: Interest Rate, Inflation, and Economic Growth Analysis

US Federal Reserve Governor

US Federal Reserve Governor Jerome Powell’s press conference included the following points:

First: The US Federal Reserve Governor reads the interest statement:

• The US Federal Reserve is committed to returning inflation towards its specified target and optimal exploitation of the labor market.
• It is natural to look at what has been achieved with these two goals by the end of this year.
• Significant progress has been made on the inflation target, but inflation remains above target.
• I assure citizens that the US Federal Reserve will do its utmost to bring inflation back toward its set target.
• Interest rates were raised to 5.50% levels to curb high inflation.
• Monetary policy has been tightened significantly to confront high inflation, and this policy will continue until the target is achieved.
• The full impact of monetary tightening is not yet clear.
• Labor market conditions remain strong but have slowed significantly.
• Unemployment remains low, near 3.7%, and the rate of job creation has clearly declined, but labor market participation has risen since last year.
• Inflation has slowed significantly this year, but is still above its target.
• We welcome the recent developments regarding lower inflation, but we still want further declines to come.
• The US Federal Reserve will take some time to achieve its inflation target, and this target may be achieved in 2026.
• The US Federal Reserve understands that high inflation causes great hardship for citizens.
• The US Federal Reserve has great determination to return inflation towards its set target.
• The US Federal Reserve raised interest rates, cut the budget, and tightened monetary policy to bring inflation back toward the target.
• The US Federal Reserve believes that monetary policy tightening is currently at or near its peak.
• The US Federal Reserve is committed to making appropriate tightening monetary policy decisions, and maintaining tight monetary policy for a period of time to return inflation towards its specified target.
• The US Federal Reserve will make its decisions during each meeting separately, in response to the upcoming economic data.
• The US Federal Reserve is making every effort within its commitment to restore inflation towards its specified target and optimal exploitation of the labor market.

Second: US Federal Reserve Governor Jerome Powell answers press questions:

• We believe the Fed is at or near peak interest rates.
• The scenario of raising interest rates again is still within the US Federal Reserve’s options.
• Members of the US Federal Reserve spoke about the path of reducing interest rates today.
• There were expectations that interest rate cuts would be a topic of discussion in the future.
• There is a possibility of an economic recession next year.
• The US economy is doing very well, and this is a big surprise to us.
• We expected an economic recession this year, but this did not happen due to the strength of the US economy.
• Economic growth and strength of labor market conditions may affect inflation expectations.
• The US Federal Reserve carefully monitors real interest rates.
• The US Federal Reserve focuses on its decisions, and has nothing to do with what the markets think regarding upcoming monetary policy decisions.
• The US Federal Reserve’s mission is to restore the goal of price stability and achieve optimal exploitation of the labor market.
• We have made good progress on this, but we would like to make more progress.
• If we have a strong economic growth rate, this means that it may take some time for inflation to return to its target, and this means that we may keep rates high for a while, and perhaps we may raise rates again.
• Wages are growing at a pace that does not help bring inflation towards the target.
• In general, it can be said that we welcome developments in the labor market.
• Citizens are still living with high inflation, which they do not like.
• Wages rise and help citizens cope with high inflation.
• The US Federal Reserve will use all the tools at its disposal to return inflation towards the target and achieve price stability.
• We don’t want an economic recession, and we don’t want unemployment to rise, even as we meet our inflation target.
• The upcoming data will be very important regarding future monetary policy decisions.
• The US Federal Reserve balances the risks between what has actually been done and what must be done in order to achieve its goals.
• The US Federal Reserve is taking into account its concerns about keeping interest rates high for too long.
• The US Federal Reserve sees signs that economic growth will decline next year.
• The US Federal Reserve believes that inflation will continue to decline during 2024, although labor market conditions are still good.
• We did not consider what circumstances might be appropriate for a rate cut.
• We are currently wondering which neutral interest rate should be maintained after monetary tightening is ended.
• The US Federal Reserve may start cutting interest rates before inflation returns to 2%.
• I think we still have some time before we think about a rate cut.
• The US Federal Reserve considers many factors before making interest rate decisions.
• The high inflation we are experiencing is due to strong demand and lack of supply.
• The current high inflation was unusual.
• The US Federal Reserve worked to use its tools to reduce demand, and with the supply problem resolved, inflation began to decline.
• Achieving the inflation target in the coming period may be difficult, and we will see that.

The US Federal Reserve Governor’s press conference has ended, the dollar index is at 102.89 points, down by approximately 1%, the spot gold price is at the 2014 dollar per ounce level, rising by 1.84%, Bitcoin stabilizes at a high of $42,000 with an increase of nearly 4%, and the Dow Jones Industrial Average It scores 36,996.87 points, an increase of 1.15%.

2023-12-13 22:41:15
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