Key Takeaways from ECB’s Lagarde and Fed Chair Powell’s Latest Speeches

[Redator]

Both the FED and ECB head representatives made speeches on Sunday, 27, and this morning, respectively. As Traders, it is always an advantage to know what tone Central Bank speakers are using and what they are considering for future key decisions.

It's only fair to remind that a Dovish Policy aims at stimulating the economy, and easing financial conditions. It is usually associated to weakness in a specific currency, with speeches around when and how much to cut.
On the other hand, a Hawkish Policy aims at cooling down inflation and tightening financial conditions. It is usually associated with strength in a specific currency, as the themes are focused on when and how much to hike.

FED’s Powell spoke on Sunday afternoon at Princeton University, and ECB’s Lagarde spoke this morning at the Hertie Graduate School in Germany.

FED's Powell Defends the Federal Reserve in Princeton

Jerome Powell made remarks for a Baccalaureate Ceremony at the Princeton University, from where he graduated 50 years ago.

He did not comment about Monetary and Financial Policy for the FED though gave a show of strength from the Central Bank amid persistent criticism from President Trump, with the President calling the head of the Federal Reserve "Too Late Powell".

FED's Powell focused his speech on defending the stimulus from COVID years and how the Federal Reserve had to react to economic uncertainty with no precedent.

Donald Trump is trying to push for Cuts. However, the Federal Reserve has indicated throughout past speeches that they are waiting for further news to observe the impact on inflation and the unforeseen US tariff policy.

Here are the May 7th FOMC Meeting's most pertinent remarks in those aspects:
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

You can access yesterday's speech here and the entire May 7, 2025 Meeting Statement here.

ECB's Lagarde and the Euro's role in the Global Economy

Christine Lagarde spoke earlier this morning at the Hertie School in Berlin, Germany.

While the ECB President avoided commenting on the broader economic outlook or monetary policy, she emphasized the euro’s expanding role in global trade, particularly as the U.S. gradually steps back from its traditional leadership position.

Lagarde highlighted that “shifts in the global currency landscape are not unprecedented in monetary history”—a statement that touches on one of the defining macro themes of this decade and beyond. Economists and market participants alike are watching closely to see whether the U.S. Dollar can maintain its dominant reserve status.

The speech offers valuable insight, even for traders primarily focused on technical movements, making it a worthwhile read.
You can access the whole speech here.

More speeches incoming with BoJ's Ueda

It's not over for Central Bankers speeches today with the Bank of Japan's Governor Ueda giving a speech at the 2025 BOJ-IMES Conference in Tokyo, Japan. He is expected to speak at 8:00 P.M. E.T.

Safe Trades!

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