Powell Speech Summary
• The Fed voted 10–2 to keep interest rates unchanged at 3.75%, as expected.
👉 Only two members voted for a 25 bps rate cut.
Majority agrees: no hurry to cut rates.
• Policy stance is appropriate
Powell says last year’s cuts already put policy in a position that supports the Fed’s goals.
• Inflation still above target
Inflation is cooling, but it remains somewhat elevated, so caution stays.
• Decisions are meeting by meeting
No fixed path. Every decision will depend on incoming data.
• No guidance on future meetings
Powell clearly said no decisions have been made about upcoming rate moves.
• Government shutdown impact is temporary
Any slowdown effects should reverse this quarter.
• No comment on USD or his future
Fed avoids commenting on the dollar or whether Powell stays after his term ends.
• Legal headlines = noise
Subpoena related news is political/legal noise, not policy direction.