https://youtu.be/VWZKqpz9vRc
United States Federal Reserve Chair Jerome Powell stressed on Wednesday at a press conference that the central bank is prepared to raise interest rates further should that be necessary in order for inflation to fall back to the 2% target. Powell noted that although a lot has been done, work is not over yet.
He reaffirmed that reducing inflation will most likely require a period of below-trend growth, as well as further labor conditions softening.
Powell remarked that the current monetary policy stance is restrictive. He also shared that the real gross domestic product (GDP) growth has been above expectations, while consumer spending has been “particularly robust” and the activity in housing has “picked up.” He reiterated that the central bank will remain data dependent.
Powell says soft landing not baseline expectation
United States Federal Reserve Chair Jerome Powell underscored on Wednesday that policymakers do not view soft landing as being the “baseline expectation.” However, the Federal Reserve chair was quick to clarify that soft landing is a “possible” scenario, though he explained that the path for it has “narrowed” and “widened” at times.
“Ultimately this may be decided by factors outside of our control at the end of the day,”
he stressed. Powell also emphasized the importance of restoring price stability as a necessary step to achieve the labor market that the policymakers are aiming for. Powell highlighted that stronger economic data could call for the central bank to act swiftly by adjusting its interest rates. NN: I think i have been pretty clear here. We are headed for double digit Fed Funds and a stock market crash…. a 100 year event. Another Great Depression anyone?