Powell speech: We are prepared to adjust policy as appropriate

Fonte Fxstreet

Federal Reserve Chairman Jerome Powell explains the decision to leave the policy rate, federal funds rate, unchanged at the range of 5.25%-5.5% and responds to questions in the post-meeting press conference.

Key quotes

"I like to look at 3 and 6 month series on payrolls report given differences in establishment and household survey."

"Overall picture is one of strong and gradually cooling labor market."

"It has given us an ambiguous result, but fact remains labor market is strong."

"No longer the super heated labor market of a few years ago."

"The big thing that change rate path forecasts was inflation."

"We had a pause in progress in inflation in first quarter, the takeaway was that it will take longer to get to rate cuts."

"We have to let the data light the way."

"Today was a better inflation report than almost anyone expected."

"Long-run neutral rate of interest is theoretical."

"People are coming to the view that rates are less likely to go back down to pre-pandemic levels."

"We are making policy with the economy we have and distortions we have."

"Policy is restrictive."

"The question of whether it's restrictive enough will be answered over time."

"Evidence is pretty clear though that policy is currently restrictive and having impact we hoped for."

"We are prepared to adjust policy as appropriate."

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

 

Isenção de responsabilidade: Apenas para fins informativos. O desempenho passado não é indicativo de resultados futuros.
placeholder
HR Path dá as boas-vindas ao principal parceiro SAP do Brasil, IntelligenzaA HR Path anunciou hoje sua maior aquisição em número de pessoas desde a sua fundação. Dando boas-vindas à Intelligenza ao Grupo HR Path, a aquisição traz a bordo consultores SAP experientes para enriquecer a forte prática SAP da HR Path. Além disso, esta colaboração permite que a HR Path estabeleça operações no Brasil.
Autor  PR Newswire
4 Mês 10 Dia Qua
A HR Path anunciou hoje sua maior aquisição em número de pessoas desde a sua fundação. Dando boas-vindas à Intelligenza ao Grupo HR Path, a aquisição traz a bordo consultores SAP experientes para enriquecer a forte prática SAP da HR Path. Além disso, esta colaboração permite que a HR Path estabeleça operações no Brasil.
placeholder
Recuo nas ações da CrowdStrike é oportunidade de compra, defende RosenblattInvesting.com – Os analistas da Rosenblatt consideram a queda das ações da CrowdStrike (NASDAQ:CRWD) (BVMF:C2RW34) uma oportunidade estratégica de compra, apesar da interrupção global causada por uma
Autor  Investing.com
Ontem 01: 41
Investing.com – Os analistas da Rosenblatt consideram a queda das ações da CrowdStrike (NASDAQ:CRWD) (BVMF:C2RW34) uma oportunidade estratégica de compra, apesar da interrupção global causada por uma
placeholder
5 políticas de Trump podem influenciar as ações; atenção a este setoresInvesting.com – Analistas do Jefferies identificaram cinco políticas propostas pelo ex-presidente dos Estados Unidos, Donald Trump, que podem influenciar a movimentação do mercado acionário, caso venç
Autor  Investing.com
6 hora atrás
Investing.com – Analistas do Jefferies identificaram cinco políticas propostas pelo ex-presidente dos Estados Unidos, Donald Trump, que podem influenciar a movimentação do mercado acionário, caso venç
placeholder
Fique por dentro das 5 principais notícias do mercado desta segunda-feiraPor Peter Nurse e Jessica Bahia MeloInvesting.com – A volátil situação política dos EUA sofreu outra reviravolta, com a desistência do presidente Joe Biden de concorrer à reeleição.Na Ásia, a China te
Autor  Investing.com
6 hora atrás
Por Peter Nurse e Jessica Bahia MeloInvesting.com – A volátil situação política dos EUA sofreu outra reviravolta, com a desistência do presidente Joe Biden de concorrer à reeleição.Na Ásia, a China te
placeholder
Focus: Economistas elevam projeção para dólar em 2024 e para próximos dois anosInvesting.com – Economistas elevaram as projeções para inflação, dólar e atividade econômica deste ano, conforme Boletim Focus divulgado pelo Banco Central nesta segunda, 22 de julho.Confira abaixo as
Autor  Investing.com
6 hora atrás
Investing.com – Economistas elevaram as projeções para inflação, dólar e atividade econômica deste ano, conforme Boletim Focus divulgado pelo Banco Central nesta segunda, 22 de julho.Confira abaixo as
goTop
quote