|

Powell speech: The Fed is going to “go in strong” on asset purchases

More comments are crossing the wires from the US Fed Chairman Powell, with the key headlines found below.

"Is of less interest" to him if Fed's asset purchase program is labeled QE or not.

Fed is not seeking authority to buy securities other than treasuries and MBS.

There is no weekly or monthly cap on asset purchases.

The Fed is going to "go in strong" on asset purchases.

Fed is willing to be patient in assessing when to raise rates back from near zero.

He has no reason to be tested for coronavirus.

He does expect to do some teleworking himself.

Fed has plenty of space to adjust its liquidity, forward guidance, asset purchase policies.

Fed has not requested any further tools from congress.

The Fed has not done a summary of economic projections this time.

Economic outlook is heavily dependent on spread of virus and actions taken to mitigate it.

It is hard to say what will happen in Q3 and Q4.

There certainly could be a need for broader fiscal policy.

The Fed will be looking at treasury market function, prepared to use tools when and as appropriate to support flow of credit.

Measures that the US takes with social distancing etc will affect duration of coronavirus outbreak.

The Fed has plenty of policy space and tools left.

Typically fiscal policy "does play a major role" when there's an economic downturn, probably needs to be case here as well.

Fed is in ongoing contact with central banks around the world, including one-on-one and group calls.

Financial system is much more resilient than it was a decade ago.

Fed learned from repo operations that it needed to "go direct", rather than go through primary dealers.

Fed is working through different solutions, finding the ones that will work in this situation.

Fed has nothing to announce on 13.3 powers.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Editor's Picks

AUD/USD bounces back toward 0.6950 on fresh USD supply

AUD/USD bounces back toward 0.6950 in the Asian session on Friday. The US Dollar retreats from 17-month highs as traders take profits off the table ahead of the all-important US Nonfarm Payrolls report. Meanwhile, the Australian Dollar draws support from reviving expectations of a November interest rate hike amid elevated global yields and inflation risks.


USD/JPY struggles near 158.00 as USD retreats ahead of NFP

USD/JPY is struggling for fresh impetus near 158.00, moving away from the top end of its weekly range in the Asian session on Friday, after hotter-than-expected Tokyo CPI and amid a broad US Dollar retreat. Traders reposition themselves ahead of US Nonfarm Payrolls.

Gold fades the earlier optimism; back below $4,200

Gold could not sustain the post-NFP bull run past the $4,200 mark per troy ounce, receding toward the $4,180 region at the end of the week. The precious metal’s inconclusive price action comes amid fresh selling pressure hurting the US Dollar as investors assess the latest NFP data.

Crypto Today: Bitcoin, Ethereum and XRP gains reinforce bullish outlook

Cryptocurrency prices are broadly recovering on Friday, led by Bitcoin moving above $86,000. Ethereum has reaffirmed its bullish outlook, rising above $2,700 while the immediate area at $2,800 caps upside. Meanwhile, Ripple hovers near $1.54.

Week ahead – Fed minutes in the spotlight amid bond market rout

Energy crisis and soaring bond yields to stay in driver’s seat in quiet week. Fed minutes eyed after drop in October rate hike bets. ISM services PMI and Treasury auctions to be watched too. Canadian employment, Japanese wages and ECB minutes also on tap.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.