🌟 SUMMARY OF FED CHAIR POWELL'S KEY SPEECH (11/12/2025)
• The risk of a weakening labor market is gradually increasing, while inflation remains high. Powell emphasized that this is a time when the Fed must be extremely cautious.
• The decision to lower interest rates this time has received broad consensus. What the members are debating is not “whether to cut or not,” but how to maintain balance for the entire economy.
• Powell stated plainly: The Fed has only one tool – interest rates – and cannot save both ends at the same time. Each decision must come at the cost of risks on one side.
• The January meeting does not have a fixed script. The Fed will let the data speak, not rushing to conclude anything prematurely.
• The Fed may maintain a high scale of bond purchases for a few more months to ensure stability in the financial market. 🕊
• The outlook for 2026 is brighter than before. GDP growth has been adjusted upward – a signal that the economy still has enough momentum to continue on the recovery path.
• Most importantly: no one on the council is thinking about raising interest rates anymore. The current debate revolves only around:
→ A pause to observe?
→ Or continue cutting to support stronger growth? 🕊
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