Jerome Powell went beyond the letter of the press release that the central bank of the United States had just published. The message is important because it feels like a promise.
The Fed believes that it is not urgent to lower the fed funds rate today, because it knows that such a shift will commit it for several months. By giving itself time to act, the Fed is only taking into account the fact that the fear of recession has subsided, writes Andrew Hammond. He says the Fed's fear is that successful disinflation in goods will not be followed by sufficient disin inflation in services.