Fourth 0.75% hike from US central bank the Federal Reserve to ~4%…BUT… some language suggesting this pace of such rises will slow … “determining the pace of future increases …will take into account the cumulative tightening of monetary policy..” #pivot federalreserve.gov/newsevents/pre…
All eyes now on the Chairman Powell press conference in just over an hours time. At the last one (on eve of last IK decision and the notorious mini budget) he sounded like some sort of anti inflationary Robocop… sending dollar and US interest rate expectations surging…
“Time is coming” to discuss moderation in pace of rate increases says Powell - may come at next meeting or the meeting after that… although statement other than that sounded pretty hawkish and not very “pivoty”… “we have not overtightened, there’s still ground left to cover”
Powell making a very interesting point about how the lags in monetary policy have changed, for example financial conditions are changing in advance of base interest rate changes - eg changes in fixed term mortgage rates
Powell: “from a risk management standpoint” if you overtighten, can then loosen monetary policy…
“It’s very premature to think about pausing” rate hikes… they will be “ongoing”
“It’s very premature to think about pausing” rate hikes… they will be “ongoing”
“I guess I should warn you if I turn out to be particularly clear, you’ve probably misunderstood what I said” his predecessor Alan Greenspan in 1988… somewhat appropriate for Powell today… 
Fed Reserve Chair Powell asked about “crisis” in UK…says Fed watching international economic and geopolitical issues, energy prices in Europe says US economy is “strong” & strong dollar is an issue for some countries, and “price stability in US” is good for whole world economy
Intersting take here:
https://twitter.com/justinwolfers/status/1587880317876142080?s=21
After 1800 statement…
It’s a pivot… € & £ surge a cent vs $ as forex markets anticipate a lower path of US rate rises.
Powell starts speaking after ten mins 1840 - oh no its not a pivot - dollar surges vs euro and sterling, on hawkish talk
It’s a pivot… € & £ surge a cent vs $ as forex markets anticipate a lower path of US rate rises.
Powell starts speaking after ten mins 1840 - oh no its not a pivot - dollar surges vs euro and sterling, on hawkish talk
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