Post
橙子Joyce
·
--
Woush Jackson Hole debut sends hawkish signal: inflation still above 2%, and the Fed “still has work to do”
Summary of key points from Fed Chair Woush Jackson Hole speech:
1. On Friday, Fed Chair Kevin Woush reiterated that the central bank’s inflation target is benchmarked to the personal consumption expenditures (PCE) price index in a prepared statement for an economic symposium hosted by the Kansas City Fed. “There should be no misunderstanding: the Fed’s 2% price stability target, measured by the personal consumption expenditures (PCE) price index, is a steadfast and unshakable objective,” he said.
2. Woush confirmed that “short-term interest rates are the main tool for achieving the dual mandate. Unconventional policies intended to stimulate economic activity may be applicable in truly crisis moments, but in other circumstances they should be used with caution—indeed, they may not be used at all.”
3. Woush said that if core inflation is unable to keep falling, officials will have to take action. “We have to be confident that core inflation is moving toward our target—clearly and fast enough. Otherwise, we still have work to do.”
4. Woush said that policymakers should focus on prices for now, adding that recent inflation data that has been better than expected does not mean that “the underlying trend has seen a meaningful improvement. Inflation is still above our 2% target. Therefore, the Fed’s top priority should be prices at present,” he said.
5. Woush also defended its approach of lacking forward guidance. “A quieter Fed, with more targeted communication, will better achieve its goals. And whether we can deliver on the mission—that is the only truly meaningful standard for testing our credibility.”
$GOOGL.US
Google’s stock price is very attractive; its cash flow ratio ranks among the global top ten. The price is really compelling—people are advised to buy.
Summary of key points from Fed Chair Woush Jackson Hole speech:
1. On Friday, Fed Chair Kevin Woush reiterated that the central bank’s inflation target is benchmarked to the personal consumption expenditures (PCE) price index in a prepared statement for an economic symposium hosted by the Kansas City Fed. “There should be no misunderstanding: the Fed’s 2% price stability target, measured by the personal consumption expenditures (PCE) price index, is a steadfast and unshakable objective,” he said.
2. Woush confirmed that “short-term interest rates are the main tool for achieving the dual mandate. Unconventional policies intended to stimulate economic activity may be applicable in truly crisis moments, but in other circumstances they should be used with caution—indeed, they may not be used at all.”
3. Woush said that if core inflation is unable to keep falling, officials will have to take action. “We have to be confident that core inflation is moving toward our target—clearly and fast enough. Otherwise, we still have work to do.”
4. Woush said that policymakers should focus on prices for now, adding that recent inflation data that has been better than expected does not mean that “the underlying trend has seen a meaningful improvement. Inflation is still above our 2% target. Therefore, the Fed’s top priority should be prices at present,” he said.
5. Woush also defended its approach of lacking forward guidance. “A quieter Fed, with more targeted communication, will better achieve its goals. And whether we can deliver on the mission—that is the only truly meaningful standard for testing our credibility.”
$GOOGL.US
Google’s stock price is very attractive; its cash flow ratio ranks among the global top ten. The price is really compelling—people are advised to buy.
Disclaimer: Includes third-party opinions. No advice. Binance AI may be used without guarantee. See T&Cs.