US Federal Reserve (FED) Chairman Jerome Powell appeared in entrance of the cameras for the second time earlier than the CPI and PPI knowledge to be introduced this week.
Talking on the US Home of Representatives Finance Committee right now, Powell made the identical speech he gave to the Senate Banking Committee on July 9, 2024.
Powell, who has taken a cautious stance thus far by stating that extra optimistic knowledge is required for rate of interest cuts, repeated his statements that extra knowledge is required for rate of interest cuts.
The highlights of Powell’s speech yesterday had been as follows:
“First quarter knowledge didn’t assist higher confidence within the path of inflation that the Fed wanted to chop rates of interest.
It’s inappropriate for the Fed to chop charges till it positive factors extra confidence that inflation is sustainably shifting towards 2%. Extra optimistic knowledge will strengthen our confidence in inflation.
Excessive inflation just isn’t the one threat we face.
Restrictive coverage helps scale back downward stress on inflation.
Incoming good knowledge will strengthen our confidence within the decline in inflation. The final month’s knowledge present that there’s progress.
Consequently, we now have made important progress in the direction of the two% inflation goal.
We proceed to make selections in conferences.
We’re decided to return inflation to our 2% goal and firmly anchor long-term inflation expectations.
Restoring value stability is crucial to attaining most employment and secure costs in the long run. “Our success in attaining these objectives issues to all People.”
When it got here to the query and reply session, Powell didn’t say something totally different along with his speech yesterday.
Whereas Powell acknowledged that he didn’t have a selected inflation quantity in thoughts for rate of interest cuts within the query and reply session, he mentioned, “I’ve some confidence that inflation will lower, however I can’t say that I’ve sufficient confidence that it’ll lower to 2% in a sustainable method but.”
Powell additionally added that it isn’t vital to attend for inflation to achieve 2 % to ease coverage and lower rates of interest.
Bitcoin (BTC), which was traded at $57,850 earlier than Powell’s speech, continues to maneuver on the identical ranges.
*This isn’t funding recommendation.