Key points of Powell's speech at Harvard University

Sina Finance News on March 30th, the following are the key points of the speech made by Federal Reserve Chairman Powell at an economics class at Harvard University on Monday: 1. Powell reiterated that it is currently difficult to determine the specific impact of oil price shocks on the economy, but monetary policy is ready to respond to this shock. The Fed is closely monitoring inflation expectations and is aware that inflation has been above its 2% target level for five consecutive years. 2. The host and an audience member asked Powell about the risks related to the private credit market. Powell responded that although the Fed is closely monitoring the market, the current difficulties seem more like a market adjustment than a widespread systemic risk event. 3. When asked about the possible successor - Kevin Warsh, the next nominee for Federal Reserve Chairman nominated by President Trump - Powell was unwilling to talk much about the issue, but he pointed out that the public and Congress have broad support for the Fed's independence. He praised the Fed team and central bank's ability to uphold their core mission, emphasizing its importance. 4. Facing a predominantly student audience, Powell admitted that the current employment market environment for young workers is challenging, but he still encouraged students to remain optimistic. He stated that the U.S. economy is dynamic and will provide them with plenty of opportunities. Furthermore, after Powell's speech, U.S. Treasury bonds continued to rise. The yields on the two-year and ten-year bonds both fell by around 10 basis points, with the major declines already completed before the speech. Investors are increasingly worried that ongoing conflicts in the Middle East could drag down the global economy, as oil price shocks are pushing up consumption prices.