🚨 Urgent: Powell reassures markets.. the American economy is "strong" but! 🇺🇸💸
The highlights from the speech of Federal Reserve Chair Jerome Powell, just now according to Investing reports:
📈 State of the economy and inflation:
• Solid foundation: Powell confirmed that the American economy still enjoys a strong and solid foundation.
• Improved outlook: Economic activity has shown a noticeable improvement since the last meeting.
• Warning on inflation: Despite the economic strength, Powell described inflation as "still dangerous" after it rose to 3% according to the latest data.
🏦 Interest rates and monetary policy:
• Stability is key: Strong signals towards maintaining interest rates in the coming period.
• Flexibility: The Fed prefers to make its decisions "meeting by meeting" based on available data.
• Looking back: Powell sees that the interest rate cuts made in 2025 put monetary policy in an excellent position to deal with current developments.
⚠️ Important note:
Powell also spoke about the government shutdown, expecting its economic effects to become clear during the current quarter of the year.
In summary: The Fed is in a state of "cautious watch"; a strong economy prevents recession, but stubborn inflation prevents interest rate cuts currently.
$BTC
$XRP
$ETH
