- May 3 Fed Chairman Gave Press Conference
- In this article, we compiled the main topics that Powell touched on in his speech
Federal Open Market Committee (FOMC) Chairman Jerome Powell held a press conference yesterday, May 3.
Among other things, he talked about what will be the future policy of the regulator, what to expect in the near future and how the agency assesses the current situation in the banking segment..
According to him, the situation has significantly improved since the crisis in March. It is interesting that exactly on the same day the shares of two fairly large regional U.S. banks “went down..
And one of them, PacWest, whose securities “fell” by more than 40%, may be sold at all. Powell also stressed that the Fed is constantly monitoring the situation.
But despite the “improvement” of the situation, the chairman of the regulator considers it advisable to review the system of supervision.
Meanwhile, the banking sector allegedly does not play a bigger role in combating high inflation. “Moderate” recession
In the current economic climate, the Fed is forecasting a minor crisis.. The department called it a “mild recession.”
“I would characterize it (the crisis) as an increase in unemployment, but incomparably less than a normal recession.”
He also did not rule out that the country could avoid it. Moreover, the chances of it are allegedly higher than the recession itself.
Recall, in recent months, well-known experts are increasingly talking about the coming hyperinflation in the U.S..
The ex-CTO of Coinbase even spent a million dollars to prove this point. Do we have to wait for interest rates to drop?
The Fed will not stop tightening the screws. Recall, yesterday, May 3, the regulator again raised the interest rate by 0.25%.
The other option will be considered only if the market outlook changes. It is necessary to raise the “ceiling” of public debt
Paell believes that the consequences of delay in this matter will be disastrous.
Recall that the Republicans are against another increase in the “ceiling” of the national debt due to economic and financial problems.
The Fed does not support either side, but is in favor of a speedy resolution of the issue.