empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
07.04.2025 11:11 AM
Jerome Powell Is Not Ready to Intervene
Open trading account Open demo account

Investors were deeply disappointed when Federal Reserve Chair Jerome Powell made it clear during his Friday speech at the end of last week that he does not intend to intervene in the current market developments.

This image is no longer relevant

According to Powell, the U.S. central bank will not rush to respond to the Trump administration's broad tariffs or to the market turbulence triggered by fears of a global economic downturn. While the tariffs are expected to have a significant impact on the U.S. economy—slowing growth and increasing inflation—Fed officials have decided to wait for greater clarity on Trump's new policies before lowering interest rates.

The market responded immediately. Powell also emphasized that since inflation remains high, the Fed must ensure that the temporary price increases driven by tariffs do not become entrenched.

It is now evident that the Fed is not in a position to offer the kind of economic "insurance" it provided during the 2018–2019 trade war, as inflation remains above target. The Fed's apparent hesitation could result in the U.S. economy falling into a recession in the second half of the year. At that point, the central bank is likely to take action, as there will be more clarity about the trajectory of inflation and the global economy's reaction to Trump's protectionist measures.

"Although the level of uncertainty remains high, it is becoming clear that the scale of the tariffs will be significantly larger than expected," Powell said at the annual conference of the Society for Advancing Business Editing and Writing. "Our responsibility is to keep long-term inflation expectations anchored and to ensure that a one-time price level increase does not evolve into a persistent inflation problem," he added.

In his view, the Fed is in a favorable position to wait for more clarity before considering any adjustments to its policy stance. Powell noted that the central bank's tools can either slow or stimulate the economy, and a choice between the two will be necessary if both inflation accelerates and growth weakens.

Powell's remarks also indirectly point to the Fed's readiness to make broader use of its monetary policy tools, which could include not only interest rate adjustments but also changes to the size of its balance sheet. However, economists remain divided on the long-term implications of such a policy. Some believe decisive action is needed to stabilize prices and prevent an inflationary spiral, while others worry that keeping rates high for too long could slow economic growth and trigger a recession.

It is worth noting that the Fed's next meeting is scheduled for May 6–7. Traders in the futures markets, who had assigned about a 50% chance of rate cuts, reduced those odds to around 30% following Powell's comments.

As for the current technical outlook for EUR/USD: Buyers now need to focus on breaking above the 1.1020 level. Only then can they target a test of 1.1090. From there, a move to 1.1145 is possible, although reaching that without support from major players would be difficult. The final target would be the high at 1.1215. If the instrument declines, major buying activity is expected around the 1.0950 zone. If buyers don't step in there, it would be wise to wait for a retest of the 1.0890 low or open long positions from the 1.0845 level.

As for the technical picture for GBP/USD: Pound buyers need to push through the nearest resistance at 1.2950. Only then can they aim for 1.2990, although breaking above that level will be challenging. The ultimate target would be the 1.3040 level. If the pair falls, the bears will try to take control around 1.2870. If successful, a breakdown of that range could deal a serious blow to bullish positions and push GBP/USD down toward the 1.2830 low, with the potential to reach 1.2760.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Analytical News
US Market News Digest for June 10 The S&P 500 and Nasdaq 100 indices posted notable gains, driven by upbeat expectations ahead of the upcoming US-China trade negotiations. Investors are betting on a potential easing of tariffs
Ekaterina Kiseleva
12:52 2025-06-10 +02:00
1225
Analytical News
Robinhood Drops From S&P 500 — Domino Effect Hits Entire Market Robinhood Falls After Platform Expelled From S&P 500 Warner Bros. Shares Fall After Company Says Plans to Split Business European Stocks Fall on UBS Drop, U.S.-China Trade Talks Loom McDonald's
Thomas Frank
12:49 2025-06-10 +02:00
1285
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

No News Is Already Good News

Trade negotiations between the United States and China are set to continue for a second day, as both sides aim to ease tensions surrounding technology exports and rare earth elements
Jakub Novak 11:19 2025-06-10 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is under pressure, having failed to consolidate above the 1.1435 level and showing intraday declines toward the psychological level of 1.1400 and below, amid U.S. dollar
Irina Yanina 10:45 2025-06-10 UTC+2

Markets Hope for a Breakthrough in U.S.-China Trade Talks (Gold and GBP/USD May Continue Declining)

Markets have virtually come to a standstill in anticipation of the outcome of the trade negotiations between representatives of China and the United States. So far, there have been
Pati Gani 10:44 2025-06-10 UTC+2

The ECB Is Ready to Wait

The euro and the pound remain within a range against the U.S. dollar, experiencing some pressure following the first day of negotiations between China and the U.S. However, in addition
Jakub Novak 10:27 2025-06-10 UTC+2

The Market Lights Up New Stars

Nothing lasts forever under the moon. While markets advance gradually, investors closely monitor the competition among the world's most valuable companies. NVIDIA and Microsoft take turns leading, while Apple lingers
Marek Petkovich 09:30 2025-06-10 UTC+2

What to Pay Attention to on June 10? A Breakdown of Fundamental Events for Beginners

There are a few macroeconomic reports scheduled for Tuesday. The economic event calendars for both the Eurozone and the United States are empty, while the UK will release reports that
Paolo Greco 06:40 2025-06-10 UTC+2

GBP/USD Overview – June 10: A New Trial for Trump

The GBP/USD currency pair showed no interesting movements on Monday. However, given the current situation in the U.S., it's hard to envision any growth for the dollar. It turns
Paolo Greco 04:11 2025-06-10 UTC+2

EUR/USD Overview – June 10: Riots, Protests, Unrest

The EUR/USD currency pair traded very sluggishly on Monday. That's unfortunate because the news background becomes more interesting each day. This time, the news was not about trade tariffs
Paolo Greco 04:11 2025-06-10 UTC+2

EUR/USD: Calm Before the Storm? The Market Awaits News from London

The EUR/USD pair continues to trade within a 100-pip price range of 1.1350–1.1450, bouncing between its boundaries. Buyers are trying to hold within the 1.14 area, while sellers
Irina Manzenko 00:38 2025-06-10 UTC+2

The Dollar Feels Its Strength

A strong economy means a strong currency. In early June, the U.S. economy began to look strong again. EUR/USD bears anticipate a correction in the current upward trend, prompted
Marek Petkovich 00:38 2025-06-10 UTC+2

Top analytics

Relevance up to 01:00 2025-06-11 UTC--5
Intraday Strategies for Beginner Traders on June 10
08:20 2025-06-10
Forecast
Relevance up to 21:00 2025-06-10 UTC--5
EUR/USD Overview – June 10: Riots, Protests, Unrest
04:11 2025-06-10
Fundamental analysis
Relevance up to 01:00 2025-06-11 UTC--5
EUR/USD: Simple Trading Tips for Beginner Traders on June 10. Review of Yesterday's Forex Trades
09:05 2025-06-10
Forecast
Relevance up to 20:00 2025-06-10 UTC--5
Trading Recommendations and Analysis for GBP/USD on June 10: The Pound Is in No Hurry to Fall Either
04:11 2025-06-10
Trading plan
Relevance up to 21:00 2025-06-10 UTC--5
AUD/USD Forecast for June 10, 2025
04:46 2025-06-10
Technical analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.