🚨 Powell: inflation remains a problem, the market expects a difficult period
Important signals regarding the economy and the rate.
• The US economy is still growing, consumption remains stable
• The labor market is stable, but job growth is slowing down
• Inflation has been above normal (≈2.8–3.0%) for a long time
👉 Main takeaway:
The Fed is not confident that inflation has been defeated
What is currently hindering rate cuts:
• Rising energy prices (oil, gasoline) → pressure on inflation
• Geopolitics (Middle East) → high uncertainty
• Weak progress in reducing inflation for goods and services
Powell said directly:
if there is no progress on inflation — there will be no rate cuts
What this means for the market:
• The Fed is trying to balance:
→ not to "strangle" the economy
→ but also not to let inflation take hold
• Possible scenario:
→ a long period of high rates + volatile market
The market is currently in a phase of uncertainty:
inflation is still not under control, but the economy is holding up.
For crypto and stocks, this means:
movements will depend not on news, but on actual inflation reduction.