Powell's statement on interest rate policy causes market uncertainty

Recently, Federal Reserve Chair Jay Powell made an important statement during the post-meeting press conference. Powell stated that while nothing is impossible, raising interest rates at this time is not the central bank’s preferred next step.

Raising Interest Rates Is Not the Main Option

Powell’s remarks were shared on X by David Rosenberg, founder of Rosenberg Research. He emphasized that this statement is significant in the current market context. The exclusion of rate hikes from the basic scenarios indicates the Federal Reserve’s cautious approach to monetary policy adjustments.

Contradiction Between Public Statements and Internal Minutes

However, this statement has caused considerable confusion within the analysis community. Experts are questioning the consistency between Powell’s verbal remarks and the minutes of the Federal Open Market Committee (FOMC) meeting recently released. The minutes are believed to have undergone careful editing, which raises doubts about whether they reveal everything that needs to be known.

This uncertainty reflects the complex state of current monetary strategy, where investors and analysts must carefully consider each statement and official document from the Fed.