LIVE: FED Chairman Jerome Powell Speaks After Interest Rate Decision – Here Are The Highlights

After the FED kept interest rates constant between 5.25% and 5.50%, as expected, all eyes turned to Powell's press conference, which started at 21:30 GMT.

After the interest rate decision was announced as expected, the Bitcoin price showed a rather lackluster reaction and remained almost stable.

Powell has now made a statement at the meeting in question and is answering questions from members of the press. Here are the important highlights from Powell's statements:

• We are determined to return inflation to the 2% target.
• The economy does not work without price stability.
• The policy situation is restrictive.
• The full effects of the tightening have not yet been felt.
• Given where we are, the FOMC is treading carefully.
• The FED is strongly committed to reducing inflation to its 2% target.
• We will make our decisions based on the totality of the data and the balance of risks.
• The economy grew well above expectations.
• The labor market remains tight.
• Labor supply and demand conditions continue to come into better balance.
• Employment growth is at a strong pace, but less than earlier in the year.
• Nominal wage growth showed some signs of easing.
• Labor demand still continues to exceed supply.
• Inflation has remained moderate since the middle of last year.
• A few months of good inflation data is just the beginning of what needs to be done.
• There is 'a long way to go' for inflation to reach 2%.
• The restrictive stance of the policy puts downward pressure on inflation.
• We are committed to maintaining a sufficiently restrictive stance.
• Further interest rate increases may be necessary.
• We pay attention to the latest data showing a revival of economic data and labor demand. These could put further progress on inflation at risk.
• We will take into account cumulative tightening, delays, and economic and financial developments when determining whether we need further tightening.
• In order to reduce inflation, it may be necessary to remain below potential growth and soften labor conditions.
• We're not sure the policy is restrictive enough.
• Tighter financial conditions resulting from longer periods of higher interest rates, a stronger dollar and lower equities could be important for future interest rate conditions.
• Tightening conditions may need to be permanent.

The FED also shared a statement with the publication of its interest rate decision at 21:00.

In the statement, it was stated that the FED continues to monitor the developing impact of past interest rate increases while considering further steps, aware of the “delays in monetary policy's impact on economic activity and inflation, as well as economic and financial developments.”

This expression was used to indicate that there was a degree of patience in deciding on further interest rate increases and that it was accepted that the full impact of the 5.25 point interest rate increases since March 2022 has not yet been felt.

*This is not investment advice.