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FED: Powell Expected To Reiterate "No Rush" On Rate Cuts

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As per MNI's short preview last week for Chair Powell's congressional testimony starting in the Senate on Tuesday followed by the House on Wednesday (both at 1000ET/1500GMT): we will be looking for Powell to reiterate in some form that "we do not need to be in a hurry to adjust our policy stance", with policy "well-positioned" to address developments as they arise, though once again we will be interested in how he characterizes the current degree of policy restrictiveness. It's very unlikely he will be specific on the potential monetary policy consequences of shifts in trade/fiscal/immigration policy, especially given the setting.

  • Some analyst expectations for Powell's testimony:
  • BMO FICC: "will be notable insofar as how the Chair chooses to characterize the tariff announcements thus far and whether they leave the FOMC more or less likely to respond via monetary policy."
  • CIBC: "will give a closer look at how the Fed and the new administration will get along (or not)."
  • Deutsche: "Though normally investors would focus on the first day of Powell's testimony, Wednesday's appearance may take on added significance given the release of the the January CPI
    data earlier in the morning.In general, we expect Powell will largely reiterate the message from the January FOMC meeting that with a strong economy, solid labor market, and bumpy progress on inflation, the Fed is not in a hurry to cut rates."
  • ING: "It is hard to see why Powell would want to push a more dovish narrative right now."
  • TD Securities: "The chairman is expected to repeat that the FOMC is in no rush to make policy changes."
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As per MNI's short preview last week for Chair Powell's congressional testimony starting in the Senate on Tuesday followed by the House on Wednesday (both at 1000ET/1500GMT): we will be looking for Powell to reiterate in some form that "we do not need to be in a hurry to adjust our policy stance", with policy "well-positioned" to address developments as they arise, though once again we will be interested in how he characterizes the current degree of policy restrictiveness. It's very unlikely he will be specific on the potential monetary policy consequences of shifts in trade/fiscal/immigration policy, especially given the setting.

  • Some analyst expectations for Powell's testimony:
  • BMO FICC: "will be notable insofar as how the Chair chooses to characterize the tariff announcements thus far and whether they leave the FOMC more or less likely to respond via monetary policy."
  • CIBC: "will give a closer look at how the Fed and the new administration will get along (or not)."
  • Deutsche: "Though normally investors would focus on the first day of Powell's testimony, Wednesday's appearance may take on added significance given the release of the the January CPI
    data earlier in the morning.In general, we expect Powell will largely reiterate the message from the January FOMC meeting that with a strong economy, solid labor market, and bumpy progress on inflation, the Fed is not in a hurry to cut rates."
  • ING: "It is hard to see why Powell would want to push a more dovish narrative right now."
  • TD Securities: "The chairman is expected to repeat that the FOMC is in no rush to make policy changes."