Powell speech: Market's tepid inflation expectations one argument for lower rates

Additional comments from Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, cross the wires as he continues to speak at the Council on Foreign Relations in New York.

Powell said that he takes the market's apparently somewhat tepid inflation expectations seriously and added that he saw that as an argument for lower rates. Meanwhile, after staging a recovery to 96.36 with the initial reaction to St. Louis Fed President Bullard's hawkish remarks, the US Dollar Index lost its momentum and was last up 0.12% on a daily basis at 96.12. Below are some key takeaways, as reported by Reuters.

"Tariffs are not large enough to be major threat to economy alone, but could hurt confidence or markets more broadly."

"It is too early to prejudge outcome of broader Fed policy review."

"Policymakers are trying to find a credible U.S. inflation framework that the public would act on."

"Mentions of concerns on trade and tariffs in latest Beige Book doubled."

"Inflation expectations are pinned around Fed's 2% target."

"There are many factors weighing on global inflation, wage growth and productivity."

"Fed still has ability to be lender of last resort to solvent institutions in case of a crisis."

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD consolidates above 1.2000 as USD bulls take a breather

EUR/USD is in downside consolidation above 1.2000 amid risk-off mood. The US dollar clings to overnight recovery gains while the yields steady. J&J’s covid vaccine news fails to cheer the euro amid rising infections globally.


GBP/USD remains pressured below 1.3950 amid mixed UK data

GBP/USD holds lower ground below 1.3950, extending the pullback from seven-week highs. The US dollar’s strength, Brexit jitters and covid woes supersede the upbeat UK jobs data and re-opening optimism. UK CPI misses estimates with 0.7% in March.


Gold likely to face stiff resistance near $1795-$1800, focus on yields

Gold (XAU/USD) rebounded on Tuesday as the US Treasury yields tumbled alongside global stocks. Surging covid infections globally brought a reality check into the markets and triggered a fresh risk-aversion wave.

Gold News

ETH price eyes all-time highs as ETFs receive approval in Canada

Canada’s Ontario Securities Commission approved three Ethereum ETFs on April 20. This move comes after the recently launched Bitcoin ETF surpassed $1 billion in AUM. Ethereum price looks to surge 15% to retest recently set up highs around $2,548.

Read more

Markets tumble as covid fears overshadow vaccination drive

European markets have been hit hard, with rising global Covid cases serving as a reminder of how mutations could derail the recovery. Meanwhile, improved jobs data has helped the pound, but comes to the detriment of the FTSE 100. 

Read more