LIVE: FED Chairman Speaks! Beware of Gold and Bitcoin!
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The FED Chairman is speaking: Gold and Bitcoin investors are watching these statements!
The FED, the US central bank, announced the expected interest rate decision. The FED had increased the interest rate by 75 basis points in its previous meetings, and with this decision, the FED had achieved a first after 28 years. In today's meeting, the FED increased the interest rate by 0.75 basis points again. The FED raised the policy rate to the range of 3.00%-3.25%. This decision came in line with market expectations. In the initial reaction, the US Dollar Index jumped to a twenty-year high above 111.50, gaining more than 1% on a daily basis.
The FED was extremely cautious about inflation risks and committed to returning inflation to 2%. Recent indicators point to modest growth in spending and output, according to the Fed. Inflation remains elevated, reflecting pandemic-related imbalances, higher food and energy prices, and broader price pressures, according to the institution. The price of gold and Bitcoin suddenly plummeted on the FED decision. Now FED Chairman Jerome Powell is speaking. FED Chairman Jerome Powell holds a press conference half an hour after the rate decision was announced. Jerome Powell's first statements are as follows:
- The FED is firmly committed to reducing inflation to 2 percent.
- The FED wants interest rates to be 'sufficiently restrictive'.
- The Fed is committed to reducing inflation.
- Price stability is our cornerstone.
- The economy cannot function without price stability.
- We are deliberately moving our policy stance.
- The housing sector has weakened significantly.
- Weak economic growth abroad is constraining exports.
- The labor market has remained extremely tight, wage growth has increased.
- Job gains have been solid.
- The labor market remains unstable.
- The economy cannot work without price stability.
- There may be some softening in labor markets.
- We need to make sure that inflation comes down to 2 percent before we think about cutting rates.
- The pace of future rate hikes will depend on the economy.
- We think it is appropriate to continue raising interest rates.
- We are at the lowest level of restrictive monetary policy.
- We need to make sure that inflation is going to 2 percent before we think about cutting rates.
- The downward trend in inflation can be sustained with below-trend growth.
- Our monetary policy stance is geared towards price stability.
- At some point, we will reduce the rate of hikes.
- We have put in place today the lowest level that can be restrictive.
- We continue to see risks to the upward trajectory of inflation.
- We do not know whether the Fed's policy stance will lead to a recession.
- Monetary policy should be more restrictive.
- The labor market is extremely tight and unstable.
- Most interest rate sensitive sectors are feeling the impact of rate hikes.
- The FED does not plan to change its balance sheet plans at the moment.
- The FOMC is split between 100 bps and 125 bps rate hikes for the rest of the year.
- Inflation is very high, inflation expectations are well anchored.
- The FED will make monetary policy restrictive and will maintain a restrictive stance until it is sure that inflation is falling.
- Upside inflation risks have increased.
- We are at the lowest level of restrictive monetary policy.
- We have good reasons to expect the economy to remain strong, slow growth could lead to an increase in the unemployment rate.
- I wish there was a painless way to reduce inflation, but there is not.
- The economy is strong and robust.
- Inflation is eating into wage increases, delaying price stabilization will only cause more pain.
- The FOMC is split between 100 bps and 125 bps rate hikes for the rest of the year.
- Bringing down inflation will be painful.
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