Free Trial

MNI: Powell-Fed Restrictive, Meeting-By-Meeting Decisions

(MNI) WASHINGTON

Federal Reserve policy is already restrictive, allowing caution about whether more tightening is needed given the lagged effects of past rate hikes, Chair Jerome Powell said Friday.

"We've come a long way in policy tightening and stance of policy is restrictive and we face uncertainty about the lagged effects our tightening so far and about the extent of credit tightening from recent banking stresses," he said.

"Today our guidance is limited to identifying the factors we'll be monitoring as we assess the extent to which additional policy firming may be appropriate to return inflation to 2% over time. That assessment will be an ongoing one, meeting by meeting." (See MNI INTERVIEW: Fed Pause Could Make Inflation More Entrenched)

Powell did not tip his hand on whether he favors a pause or one additional hike at the June meeting.

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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.