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The Fed announced its interest rate decision, maintaining the current level as expected. The critical focus now lies on how economic projections have shifted. The initial statements reflected a relatively dovish tone, indicating that the Fed is cautious about adopting a hawkish stance due to tariff impacts, which is seen as a positive sign for cryptocurrency markets. However, more clarity is needed, particularly in the forthcoming remarks from Powell.
Key Statements from Fed Chair
Fed has revised down its economic growth forecasts while raising inflation expectations. Despite this, they are targeting a 50 basis point cut annually. Additionally, expectations are growing that quantitative tightening will end due to a deceleration in the balance sheet reduction rate. Just three months ago, the Fed projected a 2.1% growth for 2025, but now they foresee a slowdown.
One concerning detail is that while one member expected no rate cuts in December, now four members share this sentiment. The Fed is also slowing the pace of its quantitative tightening program, reducing the cap on U.S. Treasury debt from $25 billion to $5 billion. All FOMC members supported the decision to keep rates unchanged.
Below, you can find key highlights from Powell’s statements, which will be updated as new significant comments arise. You can refresh the page to check continuously.
- Powell speaks.
- Powell: The economy is strong. Labor market conditions are solid. Inflation remains somewhat elevated.
- Powell: Fed made necessary technical decisions to slow the rate of balance sheet decline.
- Fed Chair Powell: Recent indicators show moderation in consumer spending.
- Fed Chair Powell: Surveys indicate increased economic uncertainty.
- Powell: It is still unclear how uncertainty will affect the outlook.
- Fed Chair Powell: The labor market is not the source of inflationary pressures.
- Fed Chair Powell: PCE price index likely rose by 2.5% in December.
- Fed Chair Powell: Inflation expectations have recently trended upward, driven by tariffs.
- Fed Chair Powell: Long-term inflation expectations align with the 2% target.
- Powell: New leadership is implementing significant policy changes; the net effect is crucial.
- Powell: There is high uncertainty regarding policy changes and economic impacts.
- Powell: We don’t need to rush; we are well-positioned to wait for better clarity.
- Powell: Uncertainty is unusually high; policy is not on a predetermined path.
- Powell: If the economy remains strong, we can maintain policy restraint for longer.
