Powell Sets Stage for September Easing
Federal Reserve Chair Jerome Powell signals upcoming interest-rate cuts, indicating the "time has come" for easing.
Federal Reserve Chair Jerome Powell signals upcoming interest-rate cuts, indicating the "time has come" for easing.
While Powell didn’t specify the size or path of the reductions, his comments point to an imminent shift from the current two-decade high rates. This announcement comes as inflation shows progress, and markets now focus on incoming labor market data. Treasury yields and the dollar fell, while stocks rose following Powell's remarks.
US Market Pricing: Traders bet on a quarter-point rate cut next month, with about 1 percentage point of easing anticipated in 2024.
Middle East Conflict: Escalating tensions could impact safe-haven demand for Treasuries and the dollar.
“Markets need to digest this speech and remind themselves they — and the Fed — are still data dependent,” Jack McIntyre, portfolio manager at Brandywine Global Investment Management." – Bloomberg
Sources
BloombergWritten by Henon
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