-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
Commodities
Real-time insight of oil & gas markets
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Chart Packs -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessREPEAT:MNI POLICY:Fed Powell: Need Gradual Rate Hikes
Repeats Story Initially Transmitted at 21:07 GMT Oct 3/17:07 EST Oct 3
By Jean Yung
WASHINGTON (MNI) - Federal Reserve Chair Jay Powell on Wednesday capped off
a week of public speaking by reiterating the need to raise interest rates
gradually toward a neutral level in light of a "remarkably positive set of
economic circumstances."
The following are the key points from his comments at a conference in
Washington.
--Very accommodative policy is no longer appropriate in the current
environment, which calls for interest rates to "very gradually" move toward
neutral. "We may go past neutral, but we're a long way from neutral at this
point."
--The Fed expects to continue to see a strong economy, low unemployment,
and stable prices in the foreseeable future until "some exogenous event"
disrupts the outlook. "There's no reason to think this cycle can't continue for
quite some time, effectively indefinitely." With financial stability risks
staying in a moderate range, Powell speculates that the cause of the next
recession will not look like the last one, maybe "a cyberattack or some kind of
global event."
--Not yet detecting impact from tariffs and trade uncertainty on growth,
business investment, hiring or other economic data
--Public confidence in central banks and their commitment to stable prices
has "reduced the sensitivity of inflation to changes in unemployment," rendering
the Phillips Curve quite flat.
--Why wage growth isn't faster in a very tight labor market remains a
"mystery," but the Fed does not think the economy is in imminent danger of wage
increases driving price increases.
--The labor force participation rate has rebounded to a "good solid number"
but certain age cohorts have not fully recovered to pre-crisis levels. However,
taken alongside a range of other job market indicators, it points to full
employment.
--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.