Rebel Capitalist News Jerome Powell Interest Rate Decision LIVE (Reaction And Today's News)
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Jan 29, 2025 Jerome Powell, Chairman of the Federal Reserve, shares insights on crucial economic decisions. He discusses the recent choice to keep interest rates steady and explores inflation trends and labor market dynamics. Powell analyzes the implications of varying economic indicators and the Fed's balancing act between fostering employment and managing inflation. He also weighs in on global economic influences, including the Bank of Canada's rate cut and the recent performance of tech stocks, all while hinting at future economic events.
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Fed Decision and Market Reaction
- The Federal Reserve decided to keep interest rates the same.
- They signaled a hawkish stance, causing bond market yields to rise.
Labor Market and Inflation
- Jerome Powell stated that the labor market has cooled down from its overheated state.
- He also acknowledged that the labor market isn't driving significant inflation.
Rate Cuts and Market Response
- The Fed lowered policy rates by a full percentage point over the last three meetings.
- George Gammon points out that mortgage rates and long-term yields increased despite this.