Federal Reserve Chairman Jerome Powell confirmed that interest rates remain steady at 4.5% and discussed measures to ensure economic stability.
Quantitative Easing and Inflation Insights
Powell stated that inflation is transitory and the current measures remain in place. He also announced a reduction in the pace of the securities portfolio decrease, with the monthly limit for the repayment of Treasury bonds being lowered from $25 billion to $5 billion.
Market Reactions to Powell’s Remarks
The decision to maintain interest rates contributes to short-term price stability, while Powell’s comments reduced market uncertainties. Asset reduction will not stop until the end of the year, although a significant step back was taken today.
Powell emphasized that the outlined measures will be implemented gradually based on economic data, playing a crucial role in maintaining the stability of the economic system.
