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.