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Powell Sends "Higher For Longer" Message, But Hikes Not Yet On FOMC's Mind

FED

A comparison of Powell's opening prepared statement vs March's is here.

  • The key addition is "So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations. It is likely that gaining such greater confidence will take longer than previously expected."
  • And the next sentence, "We are prepared to maintain the current target range for" used to conclude "longer, if appropriate" - now it ends "as long as appropriate".
  • Additionally the opening statement now makes a point of including "policy is well positioned to deal with risks and uncertainties in pursuing both sides of our dual mandate".
  • It seems a clearer "higher for longer" message that Powell reinforced in the Q&A, though the "well positioned" assessment doesn't make it sound like a hike is yet on the FOMC's mind (and Powell noted that "I think it's unlikely that the next policy rate move will be a hike").
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A comparison of Powell's opening prepared statement vs March's is here.

  • The key addition is "So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations. It is likely that gaining such greater confidence will take longer than previously expected."
  • And the next sentence, "We are prepared to maintain the current target range for" used to conclude "longer, if appropriate" - now it ends "as long as appropriate".
  • Additionally the opening statement now makes a point of including "policy is well positioned to deal with risks and uncertainties in pursuing both sides of our dual mandate".
  • It seems a clearer "higher for longer" message that Powell reinforced in the Q&A, though the "well positioned" assessment doesn't make it sound like a hike is yet on the FOMC's mind (and Powell noted that "I think it's unlikely that the next policy rate move will be a hike").