There was a significant rally in gold, bitcoin, and the U.S.
“A 75-basis-point increase is not something the committee is actively considering,” Powell told reporters Wednesday.
“Households and businesses are in strong financial shape, the labor market is very very strong, the economy is strong and is well-positioned to handle tighter monetary policy.
economy is “vulnerable to a recession” or can’t handle higher rates, added Powell.
So it’s been a series of inflationary shocks that are really different from anything people have seen in 40 years,” Powell described.
Right now, Powell said he doesn’t see a tension between the two sides of the Fed’s mandate — maximum employment and price stability.
Before the meeting, market participants were looking for an almost 100% chance of a 75-basis-point rate hike at the June meeting, according to the CME FedWatch Tool.
June Comex gold futures jumped $20 on the day as Powell spoke, last trading at $1,885.30, up 0.79% on the day.
“It looks to me that gold retests $1,900/oz in the not-too-distant future, moving toward $1,938/oz if we start seeing more poor economic data,” Melek said following Powell’s press conference.