Experts Speak After Fed Chair Jerome Powell’s Press Conference – What Did Powell Say, What Did He Imply?

Global markets were focused on the Fed’s latest interest rate decision, and the bank kept its policy rate unchanged, as expected. The Fed stated that its decisions for March would depend on future macroeconomic data.

Analysts discussed the latest developments following the press conference held by Federal Reserve Chairman Jerome Powell.

Ryan Detrick, Chief Market Strategist at Carson Group, said the Fed’s decision “did not surprise” the markets and largely signaled a pause that was expected. According to Detrick, there may be no interest rate cuts until Fed Chairman Jerome Powell’s term ends in May. While noting that positive signals regarding the labor market were noteworthy, Detrick stated that inflation remains a clear source of concern. Detrick also pointed out that some within the Fed leadership might be trying to attract the attention of the Trump administration by adopting a more dovish stance.

Sid Vaidya, an asset management analyst at TD Securities, said that the Fed’s emphasis on strong GDP growth and a stable unemployment rate raised questions about how much priority the bank would give to high inflation. According to Vaidya, while recent interest rate cuts have supported employment, the latest statement suggests the Fed may refocus on inflation.

Allspring analyst Matthias Scheiber also stated that the stabilizing labor market and persistent inflation have pushed the Fed towards a “wait-and-see” approach. Scheiber said that current interest rate levels are close to neutral and help both support employment and keep inflation under control. However, he warned that the increase in investment and capital spending driven by artificial intelligence, and the rise in commodity prices, especially industrial metals, could make inflation more persistent this year. He added that markets have priced in only one of the two interest rate cuts expected at the end of last year.

Speaking at a press conference, Federal Reserve Chairman Jerome Powell highlighted the weakness in the housing sector. Powell stated, “Current indicators show that economic activity continues to expand at a solid pace. Consumer spending is resilient, and fixed asset investment is increasing. However, housing activity remains weak.” On the other hand, it was noted that signs of a recovery in the housing market are beginning to emerge by 2026. Mortgage interest rates have been at their lowest levels in three years for two weeks, while mortgage applications increased by 14 percent on a monthly basis in mid-January, according to data from the Mortgage Bankers Association (MBA). Refinancing transactions also reached their highest level since September 2025.

Analyst Audrey Childe-Freeman stated that the Fed press conference painted a more optimistic picture of the US economy, confirming that the pause in the easing cycle could be extended. According to Childe-Freeman, while this might lead to cyclical support for the dollar, the upside potential is likely to remain limited and unsustainable because the dollar did not move based on short-term fundamentals at the beginning of the year.

*This is not investment advice.