The analysis team at BBH note that the comments by the Fed Governor Powell were in line with most other Fed officials; recognizing that full employment is at hand.
“These comments, however, are noteworthy because they illustrate a point we have made about the Fed and the upcoming appointments by Trump. Powell is the lone Republican nominee among the Governors. His analysis does not differ much from the other governors. The point is that a new member will see the same set of facts. The Fed is close to its mandates. A gradual removal of accommodation is not an ideological position, but a technocrat judgment about the prudent course.”
“US data today includes the Markit flash PMI and existing home sales. Barring a significant surprise, the former does not typically elicit much of a market reaction. Existing home sales are expected to rebound from the 3.7% decline posted in February. There may be some risk of a disappointment given the weather.”
“Canada's reports March CPI. Although the month-over-month rate may tick up, the year-over-year rate may ease to 1.8% from 2.0%. The new core rate is expected to be unchanged at 1.3%. DBRS, the last of the key credit raters (from the ECB's point of view) to recognize Portugal as an investment credit is due to release its review today. With growth appearing more solid, it would be a surprise to investors if it cut the rating.”