Federal Reserve Chair Jerome Powell took part in a discussion at the Macroeconomics and Monetary Policy Conference in San Francisco, where he shared his insights on the current economic landscape.
Key Points:
- Powell noted that the latest Personal Consumption Expenditure (PCE) inflation figures aligned with expectations, offering a favourable outlook for February.
- He emphasized the importance of striking the right balance when considering rate adjustments, cautioning against the potential disruption caused by premature rate cuts.
- Powell highlighted the economy’s strength and indicated no immediate need to lower rates.
- He stressed the significance of making well-informed decisions, underscoring the Fed’s readiness to handle various scenarios confidently.
Market Response:
- Following Powell’s remarks, the US Dollar experienced a slight uptick in response. However, the impact was limited due to the ongoing Easter Holiday.
