MNI: US NOV FINAL MANUF PMI 49.7 (FLASH 48.8); OCT 48.5

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

MNI: UK NOV FINAL MANUF PMI 48.0 (FLASH 48.6); OCT 49.9

MNI: PBOC Net Drains CNY216 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Lower At 7.1865 Mon; -1.50% Y/Y

MNI: China CFETS Yuan Index Up 0.01% In Week of Nov 29

MNI: US OCT CONSTRUCT SPENDING +0.4%

MNI: US ISM NOV MANUF PURCHASING MANAGERS INDEX 48.4

MNI: EUROZONE OCT UNEMPLOYMENT RATE 6.3%

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Powell Pushback Largely Ignored

FED
The initial hawkish market move following what was (to us) an unambiguously hawkish release made sense - harder to understand is the reversal during the press conference.
  • Some of this was the focus on a stepdown to 25bp hikes at the Feb meeting, and Powell's comfort that "our policy is getting into a pretty good place now". And some was the fact that Powell didn't change the apparently achievable goalposts on inflation he first mentioned at Brookings (goods, svcs, housing).
  • Have seen some comments that Powell didn't push back forcefully on the recent easing of financial conditions, but the fact that including the following in his opening statement suggests otherwise: "Over the course of the year, financial conditions have tightened significantly in response to our policy actions. Financial conditions fluctuate in the short-term in response to many factors. But it is important that over time, they reflect the policy restraint that we're putting in place to return inflation to 2%."
  • Yes, he said "our focus is not on short-term moves but persistent moves and many, many things of course move financial conditions over time", but that suggests that if financial conditions remain looser into next year, the Fed may push even more forcefully against it.
Energy BulletsCommodities
Energy BulletsCommodities

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.