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Federal Reserve Chairman Powell "suddenly hawkish", saying there is no need to "rush" to cut interest rates

Federal Reserve Chairman Powell "suddenly hawkish", saying there is no need to "rush" to cut interest rates

Bitget2024/11/15 00:55

According to reports, Federal Reserve Chairman Jerome Powell delivered a speech on economic prospects and the path of monetary policy in Beijing time early Friday morning. He stated that the U.S. economy is recovering well, with a robust labor market and inflation falling from its peak, moving towards a 2% target. Therefore, there is no urgent need for rate cuts.

Powell emphasized that the Fed is committed to lowering inflation to target levels while supporting maximum employment. He also mentioned strong economic growth and increased consumer spending but noted weakness in the real estate market. Powell expects inflation will continue to fall towards the 2% target but anticipates some fluctuations along the way. The Fed will adjust policies based on economic data and outlooks to achieve maximum employment and price stability. After Powell's speech, interest rate markets lowered their bets on a Fed rate cut in December. Analysts believe that persistent inflation above the Fed's 2% target adds more uncertainty to actions after its December meeting.

Regarding his term, Powell simply stated he would commit himself fully until it ends: "I must serve till my term concludes; this is most important during my tenure," he said." That's what I've decided upon; it's what I'm considering." His board member term expires in January 2028.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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