Summary of Key Points from Powell's Hearing on February 12

Wallstreetcn
2025.02.12 18:23
  1. Monetary Policy

We have plenty of time to patiently wait on monetary policy issues and let the policies take effect. In hindsight, the Federal Reserve might have should ended quantitative easing (QE) earlier. I believe we can reduce the balance sheet.

  1. Inflation

The latest inflation data indicates that inflation is close but has not yet met the target, and the Federal Reserve still needs to work hard. (Housing) rental inflation has made clear progress but has not achieved the target. The Federal Reserve will not be complacent about one or two inflation data points. We will wait for the latest PPI data to observe its impact on PCE inflation data. In 2021, the Federal Reserve believed that U.S. inflation was transitory

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