Jerome Powell Addresses Trump's FTC Firings and Inflation Expectations

Federal Reserve Independence and FTC Firings

• ❓ Fed Chair Jerome Powell was questioned about President Trump's firing of two Federal Trade Commissioners and whether this action poses a threat to the Fed's independence.
• 🗣️ Powell stated he had previously answered this question and had nothing new to add, indicating a consistent stance on the matter.

Inflation Expectations and University of Michigan Survey

• 📊 The discussion revisited the University of Michigan survey and its inflation expectations, particularly the long-term outlook.
• 💡 Powell clarified that while he mentioned the survey in the summer of 2022, he did not place huge weight on it, describing it as an "ex post" story rather than a primary driver for policy decisions.
• ⚠️ He noted that the survey's long-term inflation expectations can be an outlier compared to market-based and other survey-based assessments.
• 🔍 The Fed looks at all data, including outlier readings, but considers them in the context of a broader set of indicators.
• 📈 Powell acknowledged that the University of Michigan survey is still taken notice of, despite its outlier status.