FED CHAIR POWELL: THE IMPACT OF OIL ON THE US IS SMALLER THAN ON EUROPE AND ASIA, BUT IF THE CURRENT SITUATION DRAGS ON, THE EFFECT WILL BECOME FAR MORE PRONOUNCED — ADDING HE IS VERY MINDFUL THAT PEOPLE ARE FEELING THE…

Fed Chair Powell highlighted that while the current oil price environment has a more muted impact on the U.S. compared to Europe and Asia due to structural energy independence, prolonged elevated prices would amplify second-round effects across the global economy. The transmission channel centers on energy cost pass-through and its influence on inflation expectations, with European and Asian economies more immediately exposed due to higher import dependency and tighter energy margins. This divergence supports relative resilience in U.S. consumer spending power, reinforcing a policy margin for the Fed to prioritize domestic labor market dynamics over external energy shocks. Markets are pricing in a steeper European yield curve flattening as ECB policy remains constrained by energy-sensitive growth risks. Traders will focus on the next Eurozone inflation print and U.S. PCE data to assess whether energy cost pressures begin to durably alter core inflation trajectories.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

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