📉💼 Important steps by the Federal Reserve!

Chairman Fed Chairman Jerome Powell, gave us some interesting insights into the future of interest rates. 🌟

Powell emphasized that the Fed still needs to "more good data", in order to move confidently to lower interest rates. The latest data points to slowing inflation, which is a good sign. More positive data could boost the Fed's confidence that inflation is falling steadily towards its target 2 %. 📊

Recent appearances before lawmakers suggest that labor market conditions have also cooled, improving the prospects for the Fed to achieve two key targets: maximum employment and stable prices.

The key point is that Fed will continue to make monetary policy decisions one step at a time. Cutting rates too quickly could undermine progress in reducing inflation, while keeping rates high for too long could weaken the economy and the labor market. 🏦

Powell also mentioned the importance of independence of the Fed from political influence, which is crucial to maintaining the central bank's credibility. 🔑

More inflation data will be available on Thursday and inflation is expected to remain steady. Investors are now betting on more than 70% chance thatthe Fed will start cutting rates in September. Powell , however, declined to provide specific timing for those decisions 🗓️

What is your take on the current developments?
Would you personally favor faster interest rate cuts or do you agree with the Fed's actions?

So far I think it's a reasonable position even though we may not like it very much, but I believe at least one reduction could come this year.

Nothing has been decided yet and the Fed is trying to keep the markets calm. The earliest a cut could happen is in the autumn. And if so, only one this year. That's my view.

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