Powell’s press conference - key takeaways

Below we present some key takeaways from the Fed Chairman’s press conference:

  • Zero rates are “new normal”

  • Stronger economic rebound

  • Uncertainty still remains high due to coronavirus pandemic

  • The Fed to continue its asset purchase programme at current or higher pace in the long-run

  • The Fed has lending powers, not spending powers

  • The Fed does not see any problem with “too high employment”

  • The Fed aims at inflation slightly above 2% target in the near future

  • The rebound will take some time. Still, consumer spending rose 75% compared to coronavirus low. 

  • Powell believes that today’s statement will provide clear guidance for a long time

The Federal Reserve remain dovish and signals that interest rates will remain near zero for a very long time. Therefore, one should expect that QE programme will remain at current or even higher pace - also for a long time. The message seems positive for stock markets indices. 

US500 climbed to highest levels since September 8. Source: xStation5

Economic calendar: Focus shifts to US jobs data
Morning wrap
Daily summary: Global stocks dip, Trump-Biden debate in focus
Big Lots stock jumped on optimistic outlook
BREAKING: U.S. CB Consumer Confidence well above expectations
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.