Powell speech: Economy in favorable place, Fed will act as appropriate


  • Greenback weakens modestly following Powell's remarks at Jackson Hole.
  • Powell doesn't deliver any fresh insights into the next policy move.
  • Leaves the door open for cuts by saying Fed will 'act as appropriate.'

In his prepared remarks delivered at the Jackson Hole Symposium, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, said that the US economy was in a 'favorable place,’ and added that the Fed will 'act as appropriate.'

The US Dollar Index turned south on Powell's remarks and erased its daily gains. As of writing, the index was unchanged on the day at 98.22. Below are some additional takeaways as reported by Reuters.

"Fed is working to sustain economy that faces significant risks."

"No recent precedents' to guide policy response to trade uncertainty."

"Fed tries to look through passing events, focus on how trade developments affect outlook, adjust policy to promote objectives."

"Slowing global growth, trade policy uncertainty, muted inflation weigh on favorable outlook."

"Fed is carefully watching developments, says three weeks since last policy meeting eventful."

"New tariffs on Chinese imports, more evidence of a global slowdown, geopolitical events like possible hard Brexit."

"Financial markets have reacted strongly to complex, turbulent picture."

"Economy has continued to perform well, sharp decline in global long-term bond rates, volatile equity markets."

"Financial stability risks seem moderate."

"Fed cannot prevent people from taking excessive risks."

"Will be appropriate to tilt policy one way or another because of prominent risks."

"Business investment, manufacturing have weakened; solid job growth, consumer spending supporting moderate growth well."

"Job market is historically strong."

"Inflation has been surprisingly stable during expansion."

"Premise that healthy US economy needed higher rates was generally borne out."

"Low inflation, not high inflation, is problem of this era."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD has rocked and rolled in response to US consumer data. The Federal Reserve's critical meeting is in the spotlight. Mid-September's daily chart is painting a mixed picture. The FX Poll is pointing to short-term falls and a bullish trend afterward.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

Gold bears in driver's seat as focus shifts to FOMC

Gold started the week in a relatively calm manner and continued to fluctuate in the previous week’s horizontal channel on Monday. Gold's technical outlook turned bearish following Thursday's sharp decline. Next target on the downside for XAU/USD is located at $1,730.

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

Central Bank fest

In terms of central bank meetings, the week ahead is one of the busiest.  No fewer than 13 central banks hold policy meetings, divided between six major and seven emerging markets.  While the significance of US monetary policy for the world makes the FOMC meeting a highlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures