Powell speech: Policy has not been as accommodative as we thought

Cornelia Mascio
Luglio 12, 2019

Powell said any regulatory review of the recently announced project should be "patient and careful".

Though the United States government reported strong job growth for June, other major economies' "data have continued to disappoint".

In testimony on Capitol Hill, the Fed chief was asked by Representative Maxine Waters (D-CA) if he'd heed a theoretical call by Trump to step down.

Markets Insider is looking for a panel of millennial investors.

Wall Street is all but certain that the end of the Federal Reserve's three-year hiking campaign is here.

Lower interest rates decrease the opportunity cost of holding nonyielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

Stocks rallied Wednesday as Federal Reserve Chairman Jerome Powell testified about challenges the US economy faces, adding to expectations that the central bank will cut interest rates later this month.

Fed Chair Powell said that "uncertainties since [the] June FOMC continue to dim [the economic] outlook", a not-so-subtle hint that the US-China trade war is hurting the economy.

Fed Unsure What to Do About Facebook's Crypto TokenFed Chair Powell said that Facebook's crypto project raises "many concerns". "Sterling has galloped over 100pts higher since Powell re-affirmed the bond market's desire for rate cuts".

In the first day of closely watched congressional testimony, Federal Reserve chairman Jerome Powell said the case for lower borrowing costs "had strengthened" owing to headwinds caused by global trade uncertainty.

His appearances come at a particularly sensitive time for the Fed - and for Powell personally, with Trump lashing out at his own handpicked Fed chief for not yet cutting interest rates that, in Trump's view, are needlessly slowing the economy. Markets expect those figures to reveal a notable deceleration in the pace of growth for last quarter.

"The statement also offered some positives and sounded more balanced than market moves initially suggested".

Although many anticipate rate cuts, certainty wavered last week after the Labor Department reported that the economy added 224,000 jobs to the economy in June, eclipsing forecasts of 165,000.

Above: Euro-to-Dollar rate shown at 4-hour intervals. The current Fed rate is set at 2.25 per cent to 2.5 per cent. The Fed has raised rates nine times since 2015, four increases coming under Powell's leadership. -China trade war hurting business confidence and investment the world over, the Fed is gearing up to cut rates in an effort to support the economy.

While the direction of rates is expected to be downward this year, there are conflicting opinions on how deep July's cut will be and how many more there will be this year.

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