Jerome Powell Speech: No Preset Plan To Adjust Interest Rates

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As a seasoned crypto investor with over two decades of market experience under my belt, I find myself cautiously optimistic about Jerome Powell’s recent interest rate outlook for 2025. While the latest 25 bps cut seems to be a prudent move given the current economic landscape, it’s essential to keep in mind that the Feds have always been masters of walking a fine line between stimulating growth and managing inflation.

On three separate occasions this year, the U.S. Federal Reserve, headed by Jerome Powell, has reduced interest rates for a third time. Despite the robust state of the American economy, Chair Powell suggested that the risks in reaching employment and inflation objectives are evenly balanced. This latest rate reduction brings the Fed funds rate to 4.25% – 4.5%.

Jerome Powell and Interest Rate Outlook for 2025

Although the Federal Reserve expresses optimism about making economic moves this year, they’ve consistently recognized the ongoing inflationary challenges and high levels of unemployment. In fact, Fed Chairman Powell expressed confidence in the economy’s growth as a whole, stating that inflation is approaching the anticipated 2% rate.

Through the recent 0.25% reduction in interest rates, he emphasized that the Fed’s current economic policy is less restrictive at this point. As for further cuts, Jerome Powell stated that there isn’t a predetermined speed at which the Fed will adjust the rate. He clarified that the Federal Open Market Committee (FOMC) will examine new data, reassess the outlook, and weigh risks before making decisions on future actions.

While he believes there might be a relative slowdown in interest rate cuts, the place of economic data cannot be overemphasized.

This is a developing story, please check back for updates!!!

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2024-12-18 22:55