Powell speech: Overall data on labor market shows it is extremely tight
07.03.2023, 16:28

Powell speech: Overall data on labor market shows it is extremely tight

FOMC Chairman Jerome Powell testifies on the Semi-annual Monetary Policy Report before the US Senate Banking Committee.

Key quotes

"We don't think we need to see a sharp rise in unemployment to get inflation under control."

"We are not targeting a higher unemployment rate."

"4.5% unemployment rate is still well better than most times historically."

"No obvious candidate that could replace dollar as world's reserve currency."

"Size of corporate profits can affect the inflation rate."

"Without large increase in productivity you would not be able to sustain high wage inflation over the longer term but could in short term."

"Some softening in labor market will need to happen to get inflation under control."

"Overall data on labor market shows it is extremely tight and contributing to inflation."

"What we are seeing in economy is mostly about supply chain problems and blockages."

"When that gets fixed, corporate profit margins will come down."

Market reaction

The US Dollar's bullish rally remains intact with the US Dollar Index rising more than 1% on the day at 105.40 following these comments.

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Upozorenje o rizicima

Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.

Politika poverenja

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