Powell: Much of the rise in inflation is due to pandemic-related disruptions

Can't be 100%, but that headline sounds 'transitory'

*Breaking News of Powell Speaks*
(1) Powell: At Some Point Perhaps Later This Year Will Allow Balance Sheet To Shrink.

(2) This Year We Will In All Likelihood Normalize Policy, Including Raising Rates This Year And May Start Balance Sheet Runoff Later This Year.

(3) Fed's Powell: Asset Purchases Will End In March.

(4) Powell: Fed Has Made No Decisions About Timing of Monetary-Policy Actions.

(5) POWEL: WAGE INCREASES SKEWED TO LOW-INCOME END OF SPECTRUM.

(6) FED'S POWELL: MUCH OF THE RISE IN INFLATION IS DUE TO PANDEMIC-RELATED DISRUPTIONS.

(7) Powell: If More Aggressive Rate Increases Needed to Cool Inflation, Fed Will Do It.

(8) POWELL: WE PROBABLY REMAIN IN AN ERA OF VERY LOW INTEREST RATES *Super Dovish Statement*.

(9) FED'S POWELL: THE UNITED STATES' DEBT IS UNSUSTAINABLE, AND IT IS BEST TO ADDRESS IT SOON.

(10) Fed’s Powell: Expects To Take 2-4 Meetings To Work Through B/Sheet Decision
- ‘Tends To Take’ 2-4 Meetings To Make Such Decisions.

(11) POWELL: BAL SHEET AT $9TLN IS `FAR ABOVE WHERE IT NEEDS TO BE'.


Notes:
(1) Bostic Statments:

* BOSTIC NOW SEES 3 RATE RISES FOR 2022.
*BOSTIC SAYS INFLATION SURGE SHOULD EBB THROUGH 2022.
*BOSTIC: WILL ACT TO ENSURE INFLATION DOESN’T RUN AWAY FROM US.
*FED'S BOSTIC: MARCH IS APPROPRIATE FOR THE FIRST HIKE, AND THE BALANCE SHEET RUNOFF SHOULD BEGIN SOON AFTER.
*FED'S BOSTIC, SEES THREE RATE HIKES IN 2022, WITH RISKS POINTED TOWARDS A FOURTH ON THE POSSIBILITY OF HIGHER INFLATION.

(2) Fed's George (voter, neutral):

�� The labour market appears to be tight.

�� The Fed's present ultra-accommodative monetary policy is out of sync with the economic outlook.
�� In comparison to the previous tightening cycle, I believe it will be acceptable to go faster on running down the balance sheet.

�� The coronavirus outbreak is likely to reduce labour force participation and prolong supply chain disruptions.

(3) FED'S Mester
# Fed's MESTER: GIVEN THE CURRENT SITUATION, I BELIEVE IT IS CRITICAL FOR THE FED TO TAKE ACTION TO REDUCE INFLATION.
# MESTER SAYS EVENTUALLY WE WILL GET BACK TO A LOW INFLATION ENVIRONMENT.


*Analysis*
After Netral & some hawkish statemens of other The Fed Members, Powell gave Super Dovish Statments.

*Dovish Statments* caused USD Down (Bearish) & Gold flying like a rocket (Bullish) to Resistan 3 (1814) after surpass Resistan 1 (1804) & Resistan 2 (1808).

*Suggest*
Use technical analysis.
USD was reaching Strong Support on 95,60 area and failed to break Strong Kumo Support.
If today, USD still can't breakout the Strong Support today, so USD will Bullish/ going up again tomorrow.

*Especially on Gold* Gold was being Oversold Area. Gold still has chance to reaching maximum price on Resistan 4 Area (1818-1821) for Head & Shoulders Pattern. If Gold successfull breakout the Resistan 4, it's going to be reaching Strongest Resistan Area on Resistan 5 (1829-1831).

So, be carefull for today.
Tomorrow, USD will going up suddenly with gap and high probability for going to Resistan 1 on 95,92, reaching Resistan 2 (96,00) and Resistan 3 (96,30) on US Market Session.

Bwahaha, well done again sir "I accept no responsibility for my actions"!

But hey - at least he's blaming the pandemic for this 40 year high inflation and not 9/11, so that's somewhat reassuring. Right?