Powell speech: We can be patient on rates

Eren Sengezer FXStreet

Following the Federal Open Market Committee's (FOMC) decision to keep the policy rate unchanged and to reduce asset purchases by $15 billion per month, FOMC Chairman Jerome Powell is delivering his comments on the policy outlook.

Key quotes

"It is time to taper, it is not time to raise rates."

"It is time to take a rethink because the economy has made substantial further progress but still ground to cover on employment gains."

"Our baseline expectation is supply chain issues will persist well into next year."

"We should see inflation moving down by Q2 or Q3."

"We can be patient on rates."

"If a response is called for, we will not hesitate."

"We are watching carefully on how the economy evolves, will adapt accordingly."

"We could achieve maximum employment by the middle of next year."

"Wages have been moving up very strongly."

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.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD retreats from multi-day highs around 1.3550

GBP/USD now gives away part of the earlier advance toward the 1.3550 region, or multi-week peaks, looking to consolidate around the 1.3530 region on Wednesday. Cable’s continuation of its march north follows the modest downside pressure on the Greenback after US CPI readings matched consensus in July.

EUR/USD eases from tops, back to 1.1550

EUR/USD now surrenders some gains and recedes toward the 1.1550 regio on Wednesday. Despite the knee-jerk, spot keeps the bid tone intact amid the offered stance in the US Dollar, all in the wake of in-line US inflation data in July. However, the fragile landscape in the Middle East is expected to put a floor to the occasional downward trend in the buck.

Gold challenges 10-week highs near $4,450

Gold now pushes harder and climbs to new two-month highs near $4,450 per troy ounce on Wednesday. The yellow metal’s solid performance comes on the back of a weaker US Dollar and declining US Treasuty yields across the curve as investors assess the latest US CPI data.

Ripple lags recovery as exchange reserves expand

Ripple is trading within a broadly constrained technical structure, with support at $1.00 and key moving averages limiting its recovery potential. In August, the remittance token declined by approximately 6.5%, extending its total pullback to around 14% from July's $1.18 peak.

911 million shares freed: Why SpaceX rallied into its own supply

The most heavily trailed supply event of the year landed on August 6, and the SpaceX (SPCX) stock went up. Roughly 911.5 million shares held by insiders and early backers became eligible to trade, around 43% more than the entire float sold at the listing.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.