Federal Reserve Chairman Powell:
The Fed has moved to a more neutral path and can act more cautiously in the future.
Reducing policy restrictions very slowly can cause "excessive weakening of the economy and employment".
The Federal Reserve is not on a predetermined path.
The current policy is well adjusted to deal with the risks.
Policymakers' forecasts for interest rates next year are higher, which is consistent with higher inflation.
If inflation does not move steadily towards 2%, we can reduce policy constraints at a slower pace.
Downside risks in the labor market seem to have decreased.
The labor market is gradually and regularly weakening.
Job creation is below the level that keeps the unemployment rate constant.
🔹 I see the inflation situation in general on the right track.
The term "rate and timing" indicates that we are at or close to the point of slowing down the rate of interest rate cuts.
🔹 We see the risks and uncertainties regarding inflation still high.
We believe that the policies are still significantly restrictive.
We think the economy is in a very good state and so are the policies.
Stronger economic growth and lower unemployment are driving the path to slower interest rate cuts.
Other factors driving the path of slower rate cuts are higher inflation this year and next year.
Some people have taken very preliminary steps and included the conditional effects of future policies in their predictions.
Inflation in November has returned to its track after increasing
We want to see progress on inflation and a strong labor market as we consider further interest rate cuts.
Higher inflation is probably the most important factor in the new forecasts.
The committee is examining ways in which tariffs can affect inflation; We have done a lot in this field.
It is still too early to draw conclusions about the impact of tariffs; It is not clear which countries are involved, how much the tariffs are and how long this situation will last.
A reduction in net inflation to 2.5% next year, as predicted, will be a significant improvement.
Inflation in the housing sector has decreased continuously.
There is no reason to think that an economic recession is more likely than usual.
Commodity inflation has generally returned to pre-pandemic levels.
I don't think non-market services say much about economic constraints.
It may take another year or two to reach the 2% rate.
The labor market is not weakening in a way that causes concern.
We have to evaluate the decrease in the labor market against the inflation that remained unchanged.
We have entered a new stage in this process.
We still have to work on inflation; We need to keep policies restrictive to do this.
We think our policies are effective and give the desired results.
When asked about bitcoin reserves: We are not allowed to have bitcoins and we are not looking to change the law in this regard.
Wages are at a healthy and increasingly stable level.
People feel the effects of high prices, not high inflation.
I expect next year to be a very good year.
Geopolitical disturbances are still considered a risk.
We do not overreact to the inflation results of a few months.
The economic forecast for the next three years is associated with high uncertainty.
We will not settle for inflation higher than 2%.
An interest rate hike does not seem to be a likely outcome for next year.
#USD
The Fed has moved to a more neutral path and can act more cautiously in the future.
Reducing policy restrictions very slowly can cause "excessive weakening of the economy and employment".
The Federal Reserve is not on a predetermined path.
The current policy is well adjusted to deal with the risks.
Policymakers' forecasts for interest rates next year are higher, which is consistent with higher inflation.
If inflation does not move steadily towards 2%, we can reduce policy constraints at a slower pace.
Downside risks in the labor market seem to have decreased.
The labor market is gradually and regularly weakening.
Job creation is below the level that keeps the unemployment rate constant.
🔹 I see the inflation situation in general on the right track.
The term "rate and timing" indicates that we are at or close to the point of slowing down the rate of interest rate cuts.
🔹 We see the risks and uncertainties regarding inflation still high.
We believe that the policies are still significantly restrictive.
We think the economy is in a very good state and so are the policies.
Stronger economic growth and lower unemployment are driving the path to slower interest rate cuts.
Other factors driving the path of slower rate cuts are higher inflation this year and next year.
Some people have taken very preliminary steps and included the conditional effects of future policies in their predictions.
Inflation in November has returned to its track after increasing
We want to see progress on inflation and a strong labor market as we consider further interest rate cuts.
Higher inflation is probably the most important factor in the new forecasts.
The committee is examining ways in which tariffs can affect inflation; We have done a lot in this field.
It is still too early to draw conclusions about the impact of tariffs; It is not clear which countries are involved, how much the tariffs are and how long this situation will last.
A reduction in net inflation to 2.5% next year, as predicted, will be a significant improvement.
Inflation in the housing sector has decreased continuously.
There is no reason to think that an economic recession is more likely than usual.
Commodity inflation has generally returned to pre-pandemic levels.
I don't think non-market services say much about economic constraints.
It may take another year or two to reach the 2% rate.
The labor market is not weakening in a way that causes concern.
We have to evaluate the decrease in the labor market against the inflation that remained unchanged.
We have entered a new stage in this process.
We still have to work on inflation; We need to keep policies restrictive to do this.
We think our policies are effective and give the desired results.
When asked about bitcoin reserves: We are not allowed to have bitcoins and we are not looking to change the law in this regard.
Wages are at a healthy and increasingly stable level.
People feel the effects of high prices, not high inflation.
I expect next year to be a very good year.
Geopolitical disturbances are still considered a risk.
We do not overreact to the inflation results of a few months.
The economic forecast for the next three years is associated with high uncertainty.
We will not settle for inflation higher than 2%.
An interest rate hike does not seem to be a likely outcome for next year.
#USD
