What the Fed Chair said about various topics like employment, inflation, growth, policy

Below is a summary of the comments from the Fed Chair Powell according to topics

Employment and Labor Market:

There is a continuing strong pace of job growth.
Signs of labor supply and demand are coming into better balance.
Labor demand substantially exceeds supply.
Unemployment rate at the same level as lift off is seen as a real blessing.
Some softening in labor conditions is expected.
It’s been observed that the softening is not through higher unemployment, but through fewer job openings and resignations.

Inflation:

Inflation has moderated somewhat but remains well above the long-run goal of 2%.
The process of getting inflation back to 2% still has a long way to go.
June CPI data was welcome but is seen as only one month’s report. Looking for the signal from this to be replicated.
Headline inflation has come down sharply as energy and food prices have come down.
Housing inflation has started to work its way down.
It’s expected to see core inflation come down as it is still elevated.
The overall picture is of tighter and still tightening credit conditions.

Economic Growth:

Growth in consumer spending has slowed from earlier in the year.
The housing sector has picked up, though it is still below 2022 levels.
A growth at moderate or modest levels is preferred.
Stronger growth over time could add to inflation and may require a policy response.

Monetary Policy:

Decisions are made on a meeting-by-meeting basis.
The committee will take into account the cumulative effects of monetary policy and the lags along with economic and financial developments.
The intermeeting data came in broadly in line with expectations.
Monetary policy is believed to be restrictive and is putting downward pressure on economic growth and inflation.
The active tool of monetary policy is rates. The September decision could be another hike or remaining where we are, depending on the data.

Future Outlook:

Expecting to hold policy at restrictive levels for some time to deal with inflation.
If incoming data suggests more hikes are needed, the committee is prepared to act.
Policy is working about as expected with overall resilience of the economy.
It’s hoped that inflation will follow a lower path to be consistent with the CPI data.

Financial Stability:

There is a lot of uncertainty about outlook to next meeting let alone next year.
Things have stabilized in the banking system. Overall it remains strong and resilient but still being watched carefully.
The economy is seen to be weathering the banking turmoil quite well.
Banks are now working to see they are ready to use the discount window.

Wages:

The Fed is not targeting wage inflation and won’t comment on union negotiations.
It is preferred to see wage growth at a rate consistent with 2% inflation over time.
Wages were not seen as an important cause of inflation early but are an important part of bringing inflation down now.

US stocks are mixed after his press conference:

In the US debt market:

In other markets:

In the forex:

EURUSD: The EURUSD moved up to test the broken 38.2% retracement at 1.1106 and is currently trading right around the broken 100-hour moving average of 1.10897. The price traded above and below the 100-hour moving average during his press conference with a low of around 1.1055, and a high of 1.1106.
GBPUSD: The GBPUSD traded as low as 1.2900 and as high as 1.2960. The price moved back above the broken 38.2% retracement at 1.29311 and above the 100-hour moving average of 1.29433 in the process. The current price trades just above the 200-hour moving average at 1.2946.
USDJPY: The USDJPY moved down to test the rising 200 hour MA at 140.025. The price low reached 139.92 but has a bounce back and currently trades at 140.183.

MY.BLOGTOP10.COM