Fed's Powell cautions little conviction in forecasted rate outlook
By Michael S. Derby
June 18 (Reuters) - Federal Reserve Chairman Jerome Powell cautioned on Wednesday not to place too much stock in the central bank's interest rate forecasts, which could change based on incoming data, especially on the inflation front.
On a day when the Fed reiterated its expectation that its short-term interest rate target will be lowered twice this year, Powell said at a press conference following Fed's policy meeting that “no one holds these...rate paths with a great deal of conviction, and everyone would agree that they're all going to be data dependent.”
Powell also said, "Every outside forecaster and the Fed is saying, is that we expect a meaningful amount of inflation to arrive in coming months, and we have to take that into account."
Related Articles
September Global Central Bank Divergence: How Will U.S. Stocks and Forex Markets Move?
TradingKey - Despite the divergence in monetary policies among major global central banks in September (with the Federal Reserve cutting rates while the European Central Bank, Bank of England, and Bank of Japan maintain steady rates), we expect the policy directions of the Fed, ECB, and BoE to...
Duolingo (DUOL): Can the Green Bird Fly High Again
TradingKey - Duolingo is a great business, despite the stock price being down nearly 50% from its peak less than four months ago. However, the question is whether it’s worth buying it at a market cap of $12.5 billion. The answer is “not yet” because the traffic, even though healthy...
U.S. September Rate Decision Preview: What It Means for Bitcoin and Could It Spark a New Rally?
Bitcoin’s rally stalls ahead of the Fed meeting — has the bullish momentum already been priced in?
UK July GDP Commentary: Can GBP Break Through Its Current Fluctuation?
After considering multiple factors, given the evident weakness on both sides of this currency pair, we expect the GBP/USD exchange rate to maintain its current fluctuation trend in the short term.
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
