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Powell Press Conference Summary: No Rate Hike Unaffected by Politics; Calendar Reform to Begin This Fall
On October 29, Federal Reserve Chair Jerome Powell held a press conference following the October FOMC meeting. Key highlights include:
He opened with an upbeat assessment of the U.S. economy, noting that economic activity is expanding robustly—domestic spending remains resilient, productivity stays elevated, and capital investment is strong. At the same time, he stressed that inflation remains elevated. “The Fed believes additional data received going forward will help the FOMC assess the appropriate stance of monetary policy. The Committee is committed to achieving price stability—and yes, the current pace of economic growth is indeed strong.”
On credit conditions, Powell observed that financial conditions have tightened since the last rate hike cycle—but clarified: “I neither intend to, nor am I able to, label this tightening as ‘restrictive.’”
When asked whether the upcoming midterm elections would influence rate decisions, he responded unequivocally: “Politics plays no role.”
Regarding AI development and rising oil prices, Powell noted that while oil prices continue to climb, market interest rates have already declined. He expressed cautious skepticism toward claims that rate hikes won’t affect AI advancement, confirming he has already seen tangible impacts of rate moves on the technology sector.
Additionally, Powell announced a change to the FOMC’s meeting schedule starting in the fall of 2025: the Committee will hold eight regularly scheduled meetings per year. This structure will remain unchanged through 2027, with one of those eight meetings dedicated solely to strategic policy discussion—no interest-rate vote will take place. In 2028, two such strategy-focused meetings will be held, both excluding monetary policy decisions. These strategy sessions are not formal policy-setting meetings.
He opened with an upbeat assessment of the U.S. economy, noting that economic activity is expanding robustly—domestic spending remains resilient, productivity stays elevated, and capital investment is strong. At the same time, he stressed that inflation remains elevated. “The Fed believes additional data received going forward will help the FOMC assess the appropriate stance of monetary policy. The Committee is committed to achieving price stability—and yes, the current pace of economic growth is indeed strong.”
On credit conditions, Powell observed that financial conditions have tightened since the last rate hike cycle—but clarified: “I neither intend to, nor am I able to, label this tightening as ‘restrictive.’”
When asked whether the upcoming midterm elections would influence rate decisions, he responded unequivocally: “Politics plays no role.”
Regarding AI development and rising oil prices, Powell noted that while oil prices continue to climb, market interest rates have already declined. He expressed cautious skepticism toward claims that rate hikes won’t affect AI advancement, confirming he has already seen tangible impacts of rate moves on the technology sector.
Additionally, Powell announced a change to the FOMC’s meeting schedule starting in the fall of 2025: the Committee will hold eight regularly scheduled meetings per year. This structure will remain unchanged through 2027, with one of those eight meetings dedicated solely to strategic policy discussion—no interest-rate vote will take place. In 2028, two such strategy-focused meetings will be held, both excluding monetary policy decisions. These strategy sessions are not formal policy-setting meetings.
