News

Jerome Powell speech: Rates expected to move closer to neutral level over the next year or so

Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, is delivering his remarks on the monetary policy outlook, with key quotes (via Reuters) found below.

  • Our balance sheet will continue to shrink. The program goes smoothly.
  • Rates expected to move closer to neutral level over the next year or so.
  • Hiking rates ‘too fast’ or ‘too slow’ could harm economy.

Key notes

FOMC raises the target for Fed funds rate by 25bp to 1.75-2.00%.

Following its 2-day meeting, the Federal Open Market Committee announced that it would hike the benchmark interest rate by 25 basis points to the target range of 1.75% - 2% in a widely expected decision. 

GBP/USD dumps post hawkish FOMC to test bull's commitments at the key 1.33 level.

GBP/USD has dumped to 1.3308 the low from 1.3384 the pre FOMC price with a spike in the dollar to that has rallied to 93.98 in the DXY, trading at 93.81 at the time of writing. 

About Jerome Powell (via Federalreserve.gov)

Jerome H. Powell took office as Chairman of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028.

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