FED Chair Jerome Powell – Key Points • The Federal Reserve’s current interest rate policy is appropriate and supports its goals. • Rate hikes are not the base case; decisions will be made meeting by meeting, based on data. • Inflation is still slightly above target, but most of the pressure is coming from tariffs, not demand. • Core inflation, excluding tariff effects, is close to 2%. • Tariff-related inflation is expected to peak around mid-2026 and then decline. • If inflation eases as expected, the Fed could loosen policy (rate cuts). • The US economy remains strong, despite geopolitical risks. • The Fed maintains its independence and does not comment on the dollar. ~ Market Impact – Summary • Reduced risk of rate hikes and potential future rate cuts are bullish for markets. • Gold hit an all-time high during the speech. • Positive sentiment for stocks, crypto, and other risk assets. • Mild pressure on the US dollar.
TRUMP is not satisfied with the current fed chairman Joreme Powell and he is saying rate cuts will only happen when he will be replaced
So currently im expecting neither a rise in rates and neither a cuts in rates but the result will be neutral = NO CHANGE
However still there will be volatility at the time of meeting and both sides will grab liquidity
The importance of the meeting is only Powell Speech which is after 30 mins of the fed reserve rates announcement in which Powell will give the summary of current economic situation and the plans of future and this meeting is very important as it decided the upcoming move of the financial markets