As $BTC hovers around key levels, markets are digesting Jerome Powell's latest FOMC comments. Here's a summary of the main takeaways
Current data suggests the Fed's overall outlook remains unchanged.
Inflation is still elevated, and risks are skewed to the upside.
The labor market continues to cool gradually.
The economic impact of the recent government shutdown should be offset by stronger growth next quarter.
The GDP growth forecast for 2026 has been revised upward, driven by resilient consumer spending and continued high investment in Al
Since the October meeting, there has been limited new inflation data. Interest rates are now in a "neutral" range.
The Fed will continue to make decisions meeting by meeting.
U.S. Treasury purchases aimed at liquidity and reserve management may remain elevated in the coming months to ease money-market pressures.
The 75 basis points of rate cuts since September 10 give the Fed "room to wait and observe" incoming economic data.
Notable progress has been made this year on non-tariff inflation
Powell noted the economy does not appear overheated
Recent job gains are likely overstated
Tariffs are expected to cause a one-time increase in prices
Excluding tariff effects, inflation would be close to 2%
Al is contributing to labor-market softness, but it is not the main driver
There is still a risk that tariff-driven inflation proves stickier than expected
