🟡 Summary of Powell's 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 may remain high for several months.
– Inflation remains somewhat elevated, with a recent rise in goods inflation.
– The GDP growth forecast for 2026 has been revised upward.
– 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 neutral range.
– Monetary policy is not on a predetermined path.
– The Fed will make its decisions meeting by meeting, based on the data.
- The Fed believes it is well-positioned to wait and observe how the economy evolves before adjusting its policy.
