Free Trial

Presser Begins, Powell Pushes Back Again On Loosening Fin Conditions

FED
  • Q: On the recent loosening of financial conditions.
  • Powell pushes back again:
  • A: As I mentioned, it's important that overall financial conditions reflect the policy restraint we're putting in place to bring inflation to 2%. We think they've tightened significantly in the past year but our policy works through fin conditions > econ activity, labor market and inflation.
  • "I would say it's our judgment today that we're not as sufficiently restrictive policy stance yet which is why we say that we'd expect that ongoing hikes will be appropriate."
  • Powell notes the Dot Plot shows 17 with a peak rate of 5% or more; "can't tell you confidently that we won't move up our estimate of the peak rate again at the next SEP, will depend on future data."

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.