InvestIdeas

Powell Does Not Think US Fed Would Cut Interest Rates in Mar, Given Uncertainty Ahead

US Federal Reserve Chairman Jerome Powell said that the policy rate is probably at the high end of the current cycle, and that if the economy develops as expected, it would be appropriate for the Fed to cut rates at some point this year.

There was no suggestion of a rate cut at the current monetary policy meeting. He also did not think it was likely that the Fed would cut rates in March, and that the ultimate action would depend on how the economy developed.

Powell added that the US economy was making good progress, with inflation coming down from its highs and no sign of rising unemployment. However, he felt that inflation was still too high to guarantee sustained progress in lowering it.

With uncertainty ahead, the Fed would be prepared to leave policy rates unchanged for a longer period of time if conditions were favourable, Powell remarked.

Related News: ADP Employment Change in United States for Jan is 107K, Below Forecast

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

January 2024 FOMC Debrief
https://m.youtube.com/watch?v=xZvvNq6ElsM

Key Points for January FOMC Meeting
Analyst: Shawn Sng

Holding rates steady, awaiting greater confidence – In this FOMC meeting, the U.S. Federal Reserve (Fed) has decided to maintain its rates at a 22-year-high of 5.25-5.50%. This marks the fourth consecutive meeting where the rate has been held steady and this decision was in line with market expectations.

Progression toward lower inflationary data - In the latest data releases, including indicators such as the Consumer Price Index (CPI) and Personal Consumption Expenditure (PCE), there are consistent indications of progress toward the 2% range.

Federal Reserve Projection/Guidance – In December’s meeting, the market was pricing for rates to fall by approx. 150bps for this year with rate cuts coming as early as March.

However, this optimism was dampened with Chairman Powell saying that he did not expect that it would be appropriate to reduce the target range until more certainty surfaced providing the Fed with the confidence required.

Source: Phillips

"The Federal Reserve has no intention of cutting interest rates in March, let's get back to reality!"

'24.02.01【豐富│財經起床號】黃詣庭談「聯準會無意三月降息 回歸現實吧！」

https://m.youtube.com/watch?v=LAWKlewWt7Q

Funny that the Fed crossed out the sentence:
"the US banking is sound and resilient"
https://twitter.com/agnostoxxx/status/1 ... 5772862549

No rush to cut interest rates

US Federal Reserve Chair Jerome Powell is expected to double down on his message that there's no rush to cut interest rates, especially after fresh inflation data showed that price pressures persist.

Powell is headed to Capitol Hill, where he'll deliver his semi-annual monetary policy testimony to a House committee on Wednesday and a Senate panel on Thursday.

The US central bank chief and nearly all of his colleagues said in recent weeks they can afford to be patient in deciding when to cut rates given the underlying strength in the US economy.

Source: Bloomberg

Inflation inching up....look at gas and oil prices.... After the fed meeting USD and bond price did not fall by a lot meaning market is sceptical....


Top U.S. asset manager Vanguard doesn’t believe the Fed will cut interest rates this year
https://www.cnbc.com/2024/03/21/vanguar ... -year.html

It's our view that far from "just right", Goldilocks's porridge is "too hot". Hence, outside a couple of tweaks, rate cut expectations are delusional. Is Waller the first sign the #FederalReserve is pushing back? Will Powell follow tomorrow or are we heading FOMC dissent?
https://twitter.com/JulianMI2/status/17 ... 1418696093

Powell's US rates warning means headaches for rest of the world
https://www.theedgesingapore.com/news/g ... rest-world