Powell testimony: Let’s see “a little bit more data” so we can become confident

  • We would like to have more confidence on inflation, we have some confidence but want more
  • Incoming data will determine when rate cuts begin

The “a little bit more data” sounds like May 1 is more of a possibility than the 24% chance of a cut priced in by the market.

  • Number of cuts this year will depend on the economy
  • We are seeing solid signs of growth, which should continue
  • I don’t think the risk of a recession is elevated right now
  • We are on a good path so far in being able to achieve dual mandate
  • We are making sure banks with commercial real estate sector exposure can manage any losses
  • This fallout will last over next several years

This article was written by Adam Button at www.forexlive.com. Source