Powell’s focus is the labor market, says Gary Cohn
Federal Reserve Chair Jerome Powell made it clear during his press conference that the data the Fed is closely watching more than anything else is jobs data, said former Goldman Sachs chief operating officer Gary Cohn.
“He did go back and forth giving you both sides of the argument,” said Cohn, a former economic advisor in the Trump administration. “The only thing he kept hanging his hat on was the labor market. At this point it feels like we are just labor dependent.”
— Michelle Fox
Don’t expect a rate cut in 2023, Powell says
Jerome Powell said he doesn’t expect the Fed to cut rates this year, as some major strategists project.
“Given our outlook, I don’t see us cutting rates this year, if our outlook comes true,” the Fed chair said.
Powell also said he was “not concerned” about the bond market implying one more cut before a pause, because some market participants are expecting inflation to fall faster than the Fed does.
“If we do see inflation coming down much more quickly, that will play into our policy setting, of course,” Powell said.
— Jesse Pound
Fed meeting leaned ‘slightly dovish,’ investment strategist says
The central bank is nearing the end of its rate hike campaign and was more dovish this meeting, according to Charlie Ripley, senior investment strategist for Allianz Investment Management.
A lack of clarity on future interest rate moves signals the Fed is nearing the end of is rate tightening cycle, Ripley said. After hikes end, he said the central bank will likely “sit tight while the economic data catches up to the policy.”
“The Fed is essentially speaking out of both sides of the mouth as they signaled further increases are appropriate, but also acknowledged they will consider the cumulative amount of tightening in future policy decisions,” he said.
Ripley added that the slowing pace of current rate hikes to 25 basis points is a “clear sign” that the central bank is more confident that current economic…
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