Takeaways from the FED's MPC speech Nov 23'
FE D chair Powell gave the MPC speech on 1 Nov 23'. Here are some crucial points from his speech: On recent events: >>> Economic activity expanding at a fast rate - factors: surge in consumer spending. However, housing markets flat; business investments flatting out >>> The labour market is tight but is balancing out. Nominal wage growth balancing. Unemployment is low and job vacancies still exceed the supply but have overall declined >>> I nflation is moderating but still above expectations; PCE rose 3.45 while core PCE was at 3.7%; Longer-term inflation seems well-anchored >>> Tighness in labour market may lead to further tightening of monetary policy >>> Rise in long-term yields has effects on the tightening financial conditions and will also have an effect on the broader path of monetary policy, for example, higher mortgage rates >>> Potential growth seems to be temporarily risen than usual (whi