Free Trial

A few comments from Powell so far in Q&A of.....>

FED
FED: A few comments from Powell so far in Q&A of Senate testimony:
- Sees economy in 3 phases: shutdown, bounceback, and regaining confidence.
- Says we appear to be in "bounceback" period (cites May employment report)
though will leave economy well below where we were in February. Says today's
surprisingly strong May retail sales figures are evidence that demand is being
supported. But cautious that the outlook remains uncertain and it will some
parts of the economy will struggle to return.
- Don't want Fed balance sheet any bigger than we need it to be to do our job;
not concerned about the plans for it going forward.
- Markets responded strongly to corporate bond purchase announcement; we feel we
need to follow through. Will adjust corporate buys dependent on market
conditions, no desire to distort market functioning.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.