Powell's Highlights . • Inflation is moving closer to the 2% target. • Improved supply has supported the strong US economic performance. • Inflation expectations remain intact. • Interest rates were also cut today and we are moving towards a more neutral environment. • We can back off from monetary policy tightening if inflation does not move towards 2%. • We are not on a predetermined path. • Reducing policy tightening too slowly could weaken the economy and employment. • Slowing the pace of rate cuts could reflect expectations of higher inflation. • Risks and uncertainty around inflation are higher. • The cuts we will make next year will be data-driven. • Inflation falling to 2.5% next year as expected would be significant progress. • It could take another two years from now to reach the 2% inflation target. • We expect significant policy changes, we need to know what they are and their impacts to get a clearer picture. • The path of interest rates depends on further progress in reducing inflation. • We are not looking for a legal change in the Federal Reserve regarding Bitcoin. • There is uncertainty about the future of the economy in the coming years.
