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.
Federal Reserve Chair Jay Powell will stand firm against pressure to clarify what policymakers need to see before considering taking the foot off the stimulus gas, former Fed officials told MNI in a story published late Tuesday, despite financial markets looking for upward revisions to policymakers' economic outlooks via the 'dot plot'.
MNI's latest State of Play points to policy settings unchanged after Wednesday's 2-day meet, but many will want to see how Powell sets out the stall on what 'substantial progress' will be needed in the economy for a shift in stance.
Jeffrey Lacker, ex-president of the Richmond Fed, told MNI a rough measure of substantial progress would be a drop in the unemployment rate after accounting for people who have left the labor force during the pandemic. Powell has pegged that measure at around 10%, and Lacker said it would need to drop by two or three percentage points before calling a strong rebound.
US Labor Force Participation Rate
Source: Bloomberg
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.