Powell: Watch Market Prices Closely But Do Not Act on Market Prices

BlockBeats News, July 30th, Federal Reserve Chair Powell explained why he mentioned in a press conference that the financial markets have incorporated a tighter monetary policy expectation on their own in the absence of central bank policy guidance, but this does not mean the Federal Reserve must follow the pricing actions of traders and investors.

Powell stated: "I am pleased that during the time between the two meetings, the market did not adjust pricing because of us, but rather reflected a tighter financial environment on its own."

He also said: "I think this is a beneficial development." However, he added: "We do not endorse or support any specific market trend, but I want to say that we will observe market trends with a high degree of attention."

(FX Street)