Fed Chair Powell Douses Hopes of Interest Rate Cut in March
Federal Reserve Chair Jerome Powell doused hopes for an interest rate cut beginning in March, stressing that policy makers would need to see a sustained path toward their 2% inflation target before they could take action.
"Based on the meeting today, I would tell you that I don't think it is likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that," Powell said in a press conference when asked if rate cuts are coming soon.
"Based on the meeting today, I would tell you that I don't think it is likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that," Powell said in a press conference when asked if rate cuts are coming soon.
Even before the start of the press conference, the Federal Open Market Committee was careful not to send the wrong signal that rate cuts are coming soon.
"The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%," according to the FOMC statement posted on its website.
While policymakers have seen progress in the fight to cool inflation, Powell said "we will need to see continuing evidence to build confidence that inflation is moving down sustainably toward our goal."
"The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%," according to the FOMC statement posted on its website.
While policymakers have seen progress in the fight to cool inflation, Powell said "we will need to see continuing evidence to build confidence that inflation is moving down sustainably toward our goal."
The $S&P 500 Index(.SPX.US$ deepended its losses, declining 1.4%, while the $Nasdaq Composite Index(.IXIC.US$ fell 1.9%. The $Dow Jones Industrial Average(.DJI.US$ slipped 0.7%.
"We are not at a place of really working out those kinds of details, because we weren't actively considering moving the Federal funds rate down," Powell said during the press conference after the Fed meeting. "I will say, there is a wide disparity, a healthy disparity of views, and you see that in public statements, in the minutes and the transcripts when they are released."
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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Johnnyp : What does it even mean really?
70636575 : That fuker Powell say no rate cut. But then I bet he rate cut next. This Bxtch away dump and pump.
Just liek last time he clearly say no pause 2023 Then he pause how many time ? This Bxtch neees to be responsible for his action
David Smith95 : The US economy is running far to hot to warrant a rate reduction. That is a given. Rates only come down to stimulate an economy. The markets need another several days like today to bring reality back. Most earnings are still very positive, indicating RS is still up. Maybe a .25% point mid year. Rate hike pain has still not been felt from the pandemic era house buying spree. Those mortgages don't renew for a while yet.
hechunqing69 : This shows that the economy does not need to be stimulated by cutting interest rates.