1. Powell "The money invested will be lost, but...private credit loans are not a systemic crisis"
- Key Summary: Chairman Powell said in a Harvard University lecture that private credit loans are a relatively small portion of private assets and there are no issues that could collapse the entire financial system. Regarding the Iran war, he stated that he will not immediately reflect it in monetary policy due to uncertain economic effects. As a result, the probability of a federal funds rate hike within the year (current 3.50~3.75%) in the federal funds futures market plummeted from 24.6% the previous day to 3.1%, causing rate hike expectations to collapse at once. The interpretation is that for global investors, the possibility of the U.S. Federal Reserve maintaining a wait-and-see stance for the time being has increased, making it necessary to prepare for increased volatility in rate-sensitive assets.
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Next interest rate decision (FOMC): April 28-29, 2026 (local time), results are scheduled to be announced on the morning of April 30 Korean time.
Powell's tenure as Federal Reserve Chairman is scheduled to end on May 15, 2026.
I wondered why Powell's remarks affect interest rates, so I looked it up.
Powell will continue until the next rate decision.
