Powell soothes the markets
Quote:
Originally Posted by
beacon
Powell must choose his words well tonight and in the next few weeks, lest they prove to be the proverbial "last straw"...
Forecasters generally expect gross domestic product to come in very strong for the third quarter before cooling off in the fourth quarter and next year...
Given the uncertainties and risks, and how far we have come, the Committee is proceeding carefully. We will make decisions about the extent of additional policy firming and how long policy will remain restrictive based on the totality of the incoming data, the evolving outlook, and the balance of risks (which are many, as he acknowledged in his speech today).
https://www.federalreserve.gov/newse...l20231019a.htm
After some knee-jerk reactions either way, calm returning to FX markets. USD Index down, G10 FX up - with AUD, NZD lagging others - but up from their last night lows nevertheless. Rationality and calm should prevail when what he said (and didn't say) gets digested. He can't crack the economy to get Inflation under (an arbitrary red line) 2%