Newsbreak : Fed Chairman Spoke, Gold And Bitcoin Reacted!

The markets were eagerly awaiting the speech of Federal Reserve Chairman Jerome Powell today. Prior to the speech, the prices of gold and Bitcoin began to rise. Expectations were that Powell would continue to take a cautious approach in his speech. However, due to some protests, the Fed Chairman's speech was postponed.

Jerome Powell will speak at the New York Economic Club, where he will discuss the potential impact of high bond yields on financial conditions and policy. Powell will also emphasize that the policy-setting committee is proceeding with caution and will continue to be vigilant.

Here are some key highlights from Powell's speech:

When there is more evidence that economic growth is above trend and that the labor market is no longer slack, it may be appropriate to consider further policy tightening.

The policy stance is restrictive.

Balancing too much tightening with too little tightening is complex due to considerable uncertainty.

It is believed that there is likely to be meaningful tightening.

There is a commitment to maintaining a sufficiently restrictive policy stance.

Attention should be paid to data that shows the resilience of economic growth and labor demand.

Low summer inflation readings are favorable, although the September data was somewhat less encouraging.

Inflation is still high.

The labor market is tight but cooling off.

The economy is robust, growing above the long-term trend, which is a surprise.

The economy has a stronger demand story.

The economy may be less affected by interest rates.

The effects of policy should begin to be seen.

Powell cannot provide a definitive view on understanding the delays in monetary policy.

Markets anticipate changes in Fed policy in advance.

Household savings have increased, and spending has risen.

Long-term potential growth rates have not changed significantly and remain around 2%.

It is difficult to predict a strategy to grow the economy with higher interest rates.

Powell does not know where monetary policy will land.

The effective lower bound is not a problem for the economy.

While neutral interest rates appear to have fallen over the past decade, the long-term outlook is uncertain.

There is no evidence that policy is overly restrictive.

Acknowledges the possibility of entering a more inflationary period in the future, but it is difficult to say for sure.

The Fed is making efforts to implement the right policy to bring inflation back to 2%.

Market reactions following Jerome Powell's speech are as follows:

The yield on the 10-year US Treasury bond dropped to 4.9% in response.

The US Dollar weakened against major counterparts.

The price of gold increased slightly compared to before the speech.

Bitcoin experienced a minor decline.

However, no significant market movement was observed.