BREAKING: Fed Chairman Jerome Powell Speaks After Interest Rate Decision

After the announcement that interest rates would remain unchanged, Fed Chairman Jerome Powell gave a live speech and answered questions from reporters. Here are some important excerpts from Powell's critical speech: The economy is in a solid state. Inflation has dropped significantly. Inflation is rising slightly from the target level of 2%. The labor market has reached or is close to reaching the maximum employment level. The risk of unemployment and inflation increases. Unusual fluctuations in trade make measuring GDP more complicated. Wage growth continues to slow down. Labor market conditions remain strong. Short-term inflation expectations have increased. The labor market is not the main source of significant inflationary pressure. Survey participants said customs duties were the main factor driving inflation expectations. Long-term inflation expectations are in line with the target. The government is making important policy changes. Customs duties have so far been much higher than expected. If the announced large increase in customs duties continues, inflation will be higher and employment will be lower. Avoiding persistent inflation will depend on the size of the tariff, the timing of its application, and inflation expectations. The inflationary impact of this policy may only be short-lived. For now, the Fed is waiting for the situation to become clearer. Our goal is to tightly control inflation expectations. If there is a conflict between these two goals, we must consider the gap between the goals and the time it takes to close that gap. I don't think we should be in a hurry to change interest rates. Our policies are moderately restrictive. The current inflation rate is just over 2%, and the data on housing and non-housing services is not bad either. The cost of waiting is quite low. At the moment, the decision to wait seems quite clear. When events unfold, we can act quickly when necessary. If we see higher inflation, higher unemployment, we won't make any further progress on our goals. We will see a delay in achieving our goals next year. It is impossible to immediately determine inflation or unemployment, more importantly. In some cases, a reduction in interest rates this year may be appropriate, while in others, a reduction in interest rates may not be appropriate. I can't confidently say that I know the right interest rate path. U.S. President Trump's request to cut interest rates will not affect our work in any way.(When asked about the two rate cuts expected in 3) We can't make a prediction right now, we have to wait until June. The market has fluctuated since the FOMC meeting (Federal Open Market Committee) held most recently on March 19. The stock market crash on Independence Day, the subsequent bond market crisis, the breakdown of short-term tariffs, and the later recovery of the stock market have caused a significant decline in investor sentiment, while the strengthening of the labor market and underlying economic data have drawn attention. In the context of these developments, U.S. President Donald Trump also reiterated calls for interest rate cuts. As gold prices have risen sharply since March, stocks have generally been volatile. Bond yields have increased, while oil prices have fallen sharply. The market is increasingly expecting the Fed to cut interest rates three times this year, up from the expectation of two cuts before the most recent meeting. However, the FED is not only keeping interest rates stable but also increasing concerns about the possibility of stagflation by stating that there is a growing risk of both inflation and unemployment potentially rising in the economy. The statement noted, "the risks of high unemployment and high inflation have increased."