Speaking on Wednesday, Jerome Powell stressed in his speech that research and development experts are being deployed in all areas as needed, providing valuable input on financial stability, bank mergers and more.
He added that the R&D service acts as a dedicated and ongoing source of information for policy makers, with experts available to answer questions via email.
He also confirmed that R&S economists provided detailed briefings on topics such as the impact of computer chip shortages on car production and business responses to port backlogs during the pandemic.
He noted that the Research and Development Division plays a vital role within the Board of Governors. Supporting the mission of promoting a healthy economy and a strong financial system.
R&S is the main source of important economic and financial data. Collecting information from external sources as well as producing its own statistics.
He Added that consumer credit data provides insight into household spending and balance sheets. Which benefits financial markets and the public. The monthly industrial production report provides a deeper understanding of sector performance, especially in manufacturing.
R&S specifications in Jerome Powell speech
The R&S produces the Financial Accounts of the United States, a quarterly compilation of assets, liabilities, and transactions across the economy.
Every three years, the R&S carries out the Survey of Consumer Finance, which is a major source of detailed information about household well-being. The latest survey was published last month.
These data chains, along with other products produced by R&S, serve as an important public service.
Forecasting is a critical role in research and development, enabling the pursuit of our dual mandate goals.
R&S provides fundamental forecasts for the US economy and simulates the alternative path to FOMC meetings eight times a year.
Continuous updates are provided between meetings, recognizing the unpredictable nature of the economy.
Also Read: The USD/EUR Contends with 1.0700 Amidst US Dollar’s Resurgence
Jerome Powell’s speech Impact on US Dollar
The US dollar is in the middle of a recovery phase, showing gains against all major G10 currencies, but the reasons behind this recovery are worrying. With earnings season coming to an end, traders are now taking a more comprehensive view of the US economy and its impact on the global stage. It is worth noting that a number of prominent companies disappointed investors, while major retailers announced an increase in profits. This suggests that the current environment of high interest rates is putting pressure on people’s finances, raising concerns that the United States faces a greater risk of entering a recession, which could have global ramifications.
On the economic data front, traders are now keen to deal with the effects of US Federal Reserve Chairman Jerome Powell’s speech, which was followed on Wednesday. In addition to the results and reactions that will also result after several other Fed officials read their speeches, which may provide a more detailed understanding of the concerns that the Fed currently has, especially regarding the possibility of a recession.
Do you need help in finding the best crypto exchange for your needs?
Click here: The Best Crypto Exchange Finder
