HOT MOMENTS: Interest Rate Decision After FED Chairman Jerome Powell is Speaking! LIVE

Fed Chairman Jerome Powell is reading a speech live on air and answering questions from journalists after the announcement that interest rates will remain unchanged.

Here are important excerpts from Powell's critically important speech:

• The economy is in a strong condition.
• Inflation has significantly decreased.
• Inflation is hovering slightly above the target level of 2%.
• The labor market has reached or is close to maximum employment.
• Rising unemployment and inflation risks have increased.
• Unusual fluctuations in trade are complicating GDP measurement.
• Fee increases continued to slow down.
• Labor market conditions continue to remain strong.
• Short-term inflation expectations have risen. The labor market is not the main source of significant inflationary pressure.
• Survey participants indicated that customs duties are a key factor influencing inflation expectations.
• Long-term inflation expectations are consistent with the target.
• The government is making significant policy changes.
• Tariffs have been much higher than expected so far. If the massive increase in announced tariffs continues, there will be higher inflation and lower employment.
• Avoiding persistent inflation will depend on the size, timing, and inflation expectations of tariffs.
• The inflationary effects of the policy may be short-lived.
• The FED is currently ready to wait for the situation to clarify.
• Our aim is to keep inflation expectations tightly under control.
• If there is a conflict between these two objectives, we must consider the distance between the objectives and the time required to bridge the gap.
• I don't think we need to rush to change interest rates.
• Our policy is moderately restrictive.
• The current inflation rate is slightly above 2%, and the data regarding housing and non-housing services is not bad either.
• The cost of waiting is quite low.
• For now, the decision to wait seems quite clear. As events unfold, we can move quickly as appropriate.
• If we see higher inflation and higher unemployment, we will not be able to make more progress towards our goals. Next year, we will see a delay in reaching our targets.
• It is not immediately possible to determine whether inflation or unemployment is more important.

Since the last FOMC meeting on March 19, a turbulent period has been experienced in the markets. The stock market crash on Liberation Day, followed by the bond market crisis, a brief tariff pause, and the subsequent recovery in the stock markets caused sharp declines in investor sentiment, while the strengthening in the labor market and key economic data drew attention. In the shadow of these developments, U.S. President Donald Trump reiterated calls for interest rate cuts.

While gold prices have shown strong performance since March, stocks have generally followed a volatile trend. As bond yields rose, there was a sharp decline in oil prices.

Expectations for three interest rate cuts from the FED this year have become dominant in the markets. This has surpassed the two cut expectations prior to the last meeting.

However, the FED not only kept the interest rate stable but also raised concerns about the possibility of stagflation by indicating that the risks of both inflation and unemployment rising in the economy have increased. The statement said, "the risks of high unemployment and high inflation have increased."