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Powell Q&A: People are nonetheless experiencing a excessive value degree

  • Inflation has come down quite a bit and we’re close to maximum employment
  • Data has been solid, right through today’s jobs report
  • What we’ve learned is that tariffs are higher than almost anyone expected but we don’t know where that comes to rest
  • People expect us to tell the truth, and that’s what we intend to do
  • We’re not responsible for trade, immigration or fiscal policy
  • A year from now should be much lower as impact of Trump policies becomes clearer
  • The two goals of the dual mandate may be in tension, but we’re not in a situation like the 1970s
  • It feels like we don’t need to be in a hurry
  • I fully intend to serve all of my term
  • We are hearing from a lot of people waiting for clarity, I don’t know when that will come
  • Uncertainty will decline

Powell seems to be under the illusion that there is going to be clarity on Trump policies. I don’t think that’s the case as Trump will retain the ability to threaten and implement tariffs throughout his term. We would all like to hear a clear set of policies so we can make investments but I don’t think it’s coming.

Overall, Powell isn’t giving much away here as he faces some very tough choices.

Fed Chairman: “it doesn’t seem like we need to be in a hurry”

Reporter: “really?”

Powell: “yes”

US 2-year yields have climbed during this speech and are at 3.61%.

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