Members of the Federal Reserve patience is required; reaching certainty is the driving force for reduction.

On Wednesday, members of the Federal Reserve delivered statements,
the first since the January meeting,
where Chairman Jerome Powell clarified that monetary policymakers are closely monitoring the recent decline in U.S. inflation.

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The possibility of its continued decrease comes amid a growing economy in the fourth quarter of the year, which ended at 3.3%.
Powell responded to journalists at that time, emphasizing the need to consider 6 readings that illustrate the decline in inflation,
which stabilized around 2.9% in its latest reading before deciding on a reduction.

Powell’s speech came before the release of strong labor market data, which added 353,000 jobs in January,
and wage growth increased to 0.6%.
This indicates that current economic activity is contributing to the labor market,
with concerns that these higher-than-expected numbers may add pressure to U.S. inflation once again.

Monetary policymakers stated yesterday that inflation figures are good, and the U.S. Federal Reserve is performing well according to its previously adopted policies.
This puts us in a positive scenario for the economy to move away from a severe economic recession,
as evidenced by economic growth at 3.3% and the labor market’s activity with the addition of 353,000 jobs.
Barkin, a Federal Reserve member in Washington, emphasized yesterday that we must be patient before achieving inflation goals around 2.0% before considering an interest rate cut.

Koehler, a Federal Reserve member, stated at the Brookings Institute in Washington yesterday the need to see inflation
and the labor market slowing down before starting operations to reduce borrowing costs.

Collins, a Federal Reserve member who will not vote on monetary policy this year,
stated that she is looking for clear evidence of continued inflation decline toward the target of 2.0%, which may come later this year.

Investors are reducing bets on a reduction in March and are looking forward to what the U.S. central bank may decide in early May. However, they still have limited expectations for an early reduction during the current year.

Members of the Federal Reserve patience is required

Members of the Federal Reserve patience is required

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