Jerome Powell's Remarks at the Fed Meeting: A Summary

Powell referred to the banking sector as "healthy and resilient," noting that the situation had improved since March. He also acknowledged the need for constant monitoring and cited governance flaws in the Silicon Valley Bank as a reason for increased oversight and stricter regulations.

It is interesting to note that shortly after this speech, the shares of another American bank, PacWest Bancorp, plummeted by more than 50%. Therefore, the Fed Chair's words should be critically evaluated.

Jerome Powell emphasized that the banking sector does not have a significant impact on the current fight against inflation. The Fed remains steadfast in its focus on achieving its goal of a 2% consumer price index. He explained that the interest rate would not be lowered until market forecasts change.

During the meeting, the Fed chairman acknowledged the possibility of a mild recession, which is characterized by less job losses than previous ones. While he stated that it may be possible to avoid such a recession, he also admitted that this negative scenario cannot be ruled out completely.

Powell also touched upon the national debt ceiling, highlighting the significance of its timely increase; otherwise, it might have detrimental ramifications for the US economy, such as default.