InvestorQ : What exactly did the Fed Chair, Jerome Powell, say in his testimony?
Crowny Pinto made post

What exactly did the Fed Chair, Jerome Powell, say in his testimony?

Answer
image
Arti Chavan answered.
6 months ago
Follow

The big news on Tuesday was the statement by the Federal Reserve Chair, Jerome Powell. In his post-policy statement testimony, it looked like Powell was trying to assuage markets which had suddenly started building in aggressive rate hikes. Powell virtually reaffirmed the Fed's intent to encourage broad and inclusive recovery in the job market. What he effectively meant was that, jobs would matter more than inflation and growth in GDP.

Powell was, of course, emphasizing that the Fed would not hike rates or undertake tapering of investments just on the basis of higher inflation, which was the apparent interpretation of a section of the bond markets. In fact, apart from evidence of GDP growth sustaining, the Fed would also insist on evidence of improved labour market conditions. In short, though inflation is likely to touch 3.4%, Fed will be driven by a level of 4.5% joblessness as trigger.

3 Views