Key Takeaways from the January Fed Press Conference
Jerome Powell’s narrative at the press conference was relatively neutral, but his remarks towards the end swayed the market mood negatively.
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Jerome Powell's narrative at the press conference was relatively neutral, but his remarks towards the end swayed the market mood negatively.
- The latest data points to stable economic activity growth.
- Although job gains have decelerated, the unemployment rate remains low.
- “If we saw an unexpected weakening in the labor market, that would certainly call for cutting sooner,” Powell highlighted.
- The Committee foresees no immediate need to lower the target range until it gains greater confidence that inflation is steadily moving toward their 2% goal.
The Federal Reserve overall signaled that it is contemplating when to reduce rates. However, Jerome Powell's suggestion that a rate cut in March is unlikely led to a downturn in BTC, drawing its price closer to $42,000.
Data from the CME FedWatch Tool showed that just a few days before the press conference, analysts had nearly a 50/50 outlook on a March rate reduction. Now, the likelihood of the rate remaining unchanged stands at 64.5%.
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