Summary of Key Points from Powell's January Press Conference

Wallstreetcn
2025.01.29 20:25

  1. Monetary Policy
    The FOMC does not need to rush to adjust the Federal Reserve's monetary policy stance. When asked about the prospects of a rate cut in March, it reiterated that there is no urgency.
    The Federal Reserve's policy rate is significantly higher than the neutral rate.
    The Federal Reserve has begun discussions on evaluating the policy framework and intends to complete this evaluation process by the summer of 2025. The inflation target will not be the focus of the framework evaluation. There is no interest in revising the established 2% inflation target. The employment target will be discussed again during the evaluation.

  2. Inflation
    We have merely streamlined the expression regarding inflation issues; the related wording is not intended to send a signal.
    The Federal Reserve needs to see progress in 12-month inflation data, and it seems that more progress on inflation will be achieved.

  3. Immigration and Employment
    There is no belief that the U.S. labor market needs to continue cooling.
    The scale of (illegal immigration/population) flow at the U.S. border has decreased, and this issue is expected to persist.
    There is no data reflecting the impact of President Trump's adjustments to immigration policy.
    There are reports of increasing difficulty in finding construction workers.

  4. Tariffs
    The range of possibilities for tariffs could be very, very broad.

  5. AI and Financial Markets
    The recent artificial intelligence (AI) sell-off in financial markets is unsustainable and cannot persist stubbornly. At this stage, many indicators suggest that asset prices are elevated.

  6. Relationship with Trump
    No comments will be made on U.S. President Trump's remarks since he stated that "he will ask the Federal Reserve to cut rates." There has been no contact with the president since then

Source: Wallstreetcn The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.