Watch live: Fed Chair Powell tries to explain whether the pause is fake or dovish

Watch live: Fed Chair Powell tries to explain whether the pause is fake or dovish

“One and done”?

The Fed’s statement was a brutal pause: signaling “Some additional policy reinforcement may be appropriate” as opposed to “Some further easing of the policy might be appropriate.”

Fed Chair Powell May Walk the High Wire Again – to justify a ‘pause’ with such high inflation and such low unemployment without spreading the fear that the crisis in the banking system is worse than we know (remember that they have seen the latest data from SLOOS).

Note that the market is now very (and moderately) divergent from the FedThe dot charts for the end of this year and next year… How will Powell explain that “higher for longer” versus market belief that cuts are fast approaching and many…

“The chair will have his work cut out for him because when the chair says ‘pause,’ the markets might hear ‘it’s over.’ And if he says it again, they might hear ‘rate cuts’.” Richard Clarida, who served as Fed vice chairman from 2018 to January 2022, said Tuesday.

Watch Powell explain why the market is wrong live here (starting at 2:30 p.m. ET):

Source link