🟡 Summary of the FED speech

– The outlook for employment and inflation has not changed much since the last meeting.

– The Fed will buy more short-term Treasury Bills to better control rates.

– Treasury purchases could remain high for several months.

– Inflation remains somewhat elevated, with a recent rise in goods inflation.

– The GDP growth forecast for 2026 is revised upwards.

– Powell notes that few new inflation data have been published since October.

– Short-term inflation risks are tilted to the upside.

– There is no risk-free monetary policy path.

– Rates are now in a plausible range of neutrality.

– Monetary policy is not on a predetermined path.

– The Fed will make its decisions meeting by meeting, based on data.

- The Fed believes it is well positioned to wait and see how the economy evolves before adjusting its policy.