After the FED keeps interest rates steady, FED Chairman Jerome Powell holds an important press conference. Here are all the highlights from Powell's live broadcast: (You can access the latest information by refreshing the page) The economy is strong. The FED made a technical decision to slow down the pace of balance sheet reduction. Surveys show increasing economic uncertainty. Labor market conditions are solid. Inflation is still a bit high. Time will tell how the uncertainty will affect the economic outlook. The unemployment rate was in a narrow range last year. Recent signs suggest consumer spending is slowing. Inflation has improved but remains above target. Survey shows tariffs drive inflation expectations. Some short-term inflation indicators are trending upward. There is a high level of uncertainty about new policies and their impact. There is no need for the Fed to rush to change its policy stance. We must focus on separating signals from noise. The new government is implementing significant policy changes, and the key is net impact. If the economy remains strong, we can maintain policy restraint for longer. If the labor market is weak, we can ease policy if necessary. We have seen some signs of increasing tightening in the money market. Politics does not follow a predetermined path. The framework review currently focuses on labour market dynamics and full employment targets. Related News: BREAKING: FED Announces Highly Anticipated Interest Rate Decision - Here is Bitcoin's First Reaction However, according to the FED's dot plot announced with the interest rate decision: Among the 19 authorities, 4 authorities said no interest rate cuts would be made in 2025 (1 in December), 4 authorities said that the cumulative interest rate cut in 2025 will be 25 basis points, meaning 1 interest rate cut (3 in December), 9 officials believe that the cumulative interest rate cut in 2025 should be 50 basis points, meaning 2 interest rate cuts (10 in December), 2 officials believe that the cumulative interest rate cut in 2025 should be 75 basis points, i.e. 3 interest rate cuts (3 in December), No official believes the cumulative rate cut in 2025 should be 100 basis points (1 in December) and no official believes the cumulative rate cut in 2025 should be 125 basis points (1 in December). It will be difficult to determine the extent of the impact of tariffs on inflation. Commodity inflation is rising and trying to attribute this to the increase in customs duties is difficult. It is clear that customs duties are part of the factors that lead to inflation. The prevailing view is that the policy does not send a signal on tariffs, but this cannot be confirmed. This will depend on the immediate impact of tariffs on inflation and whether inflation expectations are effectively anchored. Sometimes it may be appropriate not to worry about temporary inflation. The prevailing view is that the policy does not send a signal on tariffs, but this cannot be confirmed. This will depend on the immediate impact of tariffs on inflation and whether inflation expectations are effectively anchored. Sometimes it may be appropriate not to worry about temporary inflation. The basic forecast is that inflation will be temporary. I do not think that expected inflation will rise too much in the long run. Long-term inflation expectations remain flat or may decline slightly. Further progress on inflation may be delayed this year. The relationship between survey data and actual economic data is not very close. Survey data shows that uncertainty and downside risks have increased significantly. We are approaching price stability. *This is not investment advice. Continue Reading: HOT MOMENTS: FED Chair Jerome Powell Speaks LIVE After Interest Rate Decision – Here’s What to Follow
