ANALYSIS: Powell's speech seen as signal no rate cuts until November
In his testimony before the Senate, Fed Chairman Jerome Powell did not send any signals about when the Fed might start cutting interest rates, saying instead that the decision would be made "meeting by meeting". But this could be a sign that rate cuts will not come as quickly as the market digested. Stephen Stanley, chief U.S. economist at Santander Capital Markets, said Fed officials usually let the market prepare for the next move. Powell's comments on a "meeting-by-meeting" basis certainly seem to rule out a rate cut at the next meeting in July, and a rate cut in September doesn't seem as certain to me as financial markets are currently pricing in. I currently expect the Fed to cut rates for the first time in November.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Germany Merchant Bank strategist says Germany bond yields could reverse
Zhou Xiaoyin appointed CEO of blockchain security company Beosin
NFT sales soared to the highest level since August