Lot of interesting comments by Powell with this speech...
The recent half percentage point interest rate cut shouldn’t be interpreted as a sign that future moves will be as aggressive.
This seems to just be regular what he needs to say since he has huge pressure to lower rates even more and even quicker. He gave in with the 50-point cut and now people are going to want more and use that as the base. When they only do a 25-point cut or no cut at all the markets are going to freak out.
“We do not believe that we need to see further cooling in labor market conditions to achieve 2 percent inflation,” added Powell, who gave no outward indication of where he sees the next move going.
Last Fed meeting when they cut they literally gave up the 2% move so what is this man doing trying to bring it back?!?! The long-term was I think 2.8% so uhhh I would love to see how he thinks he can pull this off without crashing the economy.
Also as of this post I have not seen him say anything about the possible ports being shut down. That is a huge inflationary event that would occur and def screw up their numbers in the near term so....