Fed’s Powell reiterates there is no rush to reduce rates
|In his remarks at the Stanford Graduate School of Business, Chair Jerome Powell reiterated once again that the policy rate is likely at its peak in the current cycle.
Additional key quotes
“If economy evolves as central bank expects, most federal open market committee participants see it as likely appropriate to begin cutting policy rate at some point this year.”
“Too soon to say whether recent inflation readings are more than just a bump”.
“Fed has time to let incoming data guide its policy decisions; central bank is making decisions meeting by meeting.”
“Recent readings on job gains and inflation higher than expected, but do not materially change overall picture.”
“Outlook still quite uncertain, fed faces risks on both sides of its mandate”.
“Fed continues to believe policy rate likely at peak for this cycle.”
Market Reaction
The Greenback mainatins its negative performance so far on Wednesday, prompting the USD Index (DXY) to drop to new lows near 104.30 amidst higher yields and a dominating risk-on sentiment among investors.
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