Summary of Key Points from Powell's December Press Conference

Wallstreetcn
2024.12.18 20:25

  1. Interest Rate Policy
    In the process of interest rate adjustments, we are in a new phase. In the future, we need to see progress on inflation and will not overreact to a few months of inflation data.
    The resolution statement means that we are at or close to slowing the pace of interest rate cuts or pausing the rate cuts.
    We are closer to neutral (interest rates), which is another basis for our caution.
    The timing of (policy actions) indicates that we are at or close to slowing the pace of adjusting interest rate policies.

  2. Inflation
    We have made considerable progress on inflation.
    We remain confident that "inflation is on track to fall back to the target of 2%."
    We expect to achieve the inflation target in the next 1-2 years.

  3. Employment

  4. Tariffs
    The analysis of tariffs in 2018 is still a good starting point.
    Past efforts (in monetary policy) have put us in a position to assess (President-elect Trump) implementing any new tariffs.

  5. Cryptocurrency
    According to existing legislation on Capitol Hill, the Federal Reserve is not allowed to hold Bitcoin.
    The Federal Reserve is not seeking to modify the law in order to be able to hold Bitcoin

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