⚡️Highlights of Jerome Powell's speech during the FOMC press conference:
- The available data indicates that our view of the situation has not changed.
- Inflation is still at a high level.
- The labor market seems to be gradually cooling down.
- The consequences of the shutdown should be compensated by higher growth in the next quarter.
- The GDP growth forecast for 2026 has been revised upward.
- Among the main drivers are resilient consumer spending and sustained high spending on AI.
- After the October meeting, little data on inflation has come out.
- Risks for inflation are tilted to the upside.
- Rates are currently in the "neutral range."
- The Fed will make decisions from meeting to meeting.
- Purchases of U.S. government bonds to manage reserves may remain high for several months to ease pressure on the money market.
- The rate cut from September by 75 basis points gives us the opportunity to wait and see how the economy develops.
- We have made progress this year on inflation not related to tariffs.
- There is no sense that the economy is overheating.
