He noted that his confidence has grown that inflation was on the path to Fed’s 2% target. According to Powell, the Fed does not seek or welcome further cooling of labor market conditions.
Fed Chair has also said that time had come for the policy to adjust, signaling Fed was ready to start cutting rates at the next meeting.
Talking about the lessons learned in the previous years, Powell highlighted supply chain problems and energy shocks as key inflation drivers. He said that Fed’s restrictive policy helped fight inflation, but normalization of supply chains and stabilization of energy markets have also played an important role.
U.S. Dollar Index tested session lows as traders reacted to Powell’s dovish comments. Currently, U.S. Dollar Index is trying to settle below the 100.90 level.
Gold climbed back above the $2500 level, supported by…
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