US Federal Reserve Chair Jerome Powell's Jackson Hole speech: 5 key takeaways
Inflation could reaccelerate: Fed Chair Jerome Powell acknowledged that the inflation situation is improving and the economic outlook is more favorable now than it was a year ago. However, the central bank is ready to raise to interest rate further, and resilience in the economy comes with the risk of inflation reacceleration. "At upcoming meetings, we will assess our progress based on the totality of the data and the evolving outlook and risks," Powell said.
2. Benchmark rates might remain unchanged: The experts are expecting the benchmark rate to remain unchanged during the next Fed meeting in September and the remarks by the Fed chair are indicating the same. “Based on the assessment, we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data," the Fed Chair said.
3. New phase for policymaking: After some aggressive rate hikes last year, Fed Chair Jerome Powell's approach is looking calmer now and it seems like the central bank policies may enter a new phase. Jerome Powell has hinted that policymaking is in more more deliberative phase now with risk management being “critical." 4.
Strong movement in the labor market: Fed Chair Jerome Powell said that the central bank will rely on data for its further steps. He added that any strong movement in the labor market requires a stronger response. “Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy," he said.
5. Impact on growth: Last month, the US Fed raised the benchmark interest rates to a range of 5.25% to 5.5% which is a 22-year-high. As per the US Fed Chair, now the interest rates the high
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