Powell reiterates there’s no rush to cut rates

00:00 Speaker A

Ali, let’s start with you. Here you follow some breaking news. Powell is expected to say that the Fed can wait for ratio cuts. What do we know?

00:14 Ali

Yes, that’s why we get some of the explanations from Jerome Powell. For now, the excerpt said that he was well positioned to wait to learn more about the possible course of the economy before thinking about any regulation made at our policy stance. This repeats what he said at this decision conference last week. Fed Governor Chris Waller, including Michelle Bowman, said that inflation is slowing down and they are in a position to reduce rates. However, Jerome Powell said he constantly wants to see more economic data. He wants to see how tariffs will affect the economy and how this will have an impact on inflation. And by the end of this year, it seems more difference between some of these members, even with the projections priced at two -rate deductions. We make eight calls for two ratio deductions, but seven FOMC officials think we will continue to wait there. In addition to this ratio interest rate projections, we have seen that they expect a slightly higher inflation, slightly lower growth and a slight advantage in unemployment rate. This shows that potentially a more stagflationist environment moving towards the back of the year. Of course, Jerome Powell will be grilled for all this. In particular, he faced a lot of pressure from President Trump to reduce interest rates. However, we still have a lot of unknown in the economy, and this Fed meeting appeared in July and then we will have Jackson Hole in August. So much more market moving activity to watch here.