📣 Key Takeaways from the January Fed Press Conference
posted 1 Feb 2024
Jerome Powell's narrative at the press conference was relatively neutral, but his remarks towards the end swayed the market mood negatively.
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%.
