Economic news

Powell revives hike fears, says Fed not confident rates sufficiently restrictive

2023.11.09 15:07


© Reuters

Investing.com — Federal Reserve Chairman Jerome Powell said Thursday the Fed wasn’t confident yet they had reached a sufficiently restrictive level on monetary policy to bring inflation down to target, suggesting further rate hikes cannot be ruled out.   

“The Federal Open Market Committee (FOMC) is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance,” Powell said in opening remarks Thursday during a policy panel at the 24th Jacques Polak Annual Research Conference, hosted by the International Monetary Fund. 

The fed chief acknowledged that U.S. inflation had come down over the past year but said it remains “well above our 2 percent target,” Powell said, but signaled the Fed is far from ready to accept that inflation is on a sustainable path lower. Inflation “has given us a few head fakes,” he added.

In a dent to recent optimism that the Fed is set to draw the curtain on its hiking cycle, Powell said that “if it becomes appropriate to tighten policy further, we will not hesitate to do so.”

The Fed chief, however, balanced his remarks by reiterating that the Fed would continue to “move carefully” on future policy decisions.

A careful approach would allow the Fed to “address both the risk of being misled by a few good months of data, and the risk of overtightening,” he added.

The reminder that the Fed’s hiking cycle remains alive forced traders to price in a further delay in rate cuts, with the first cut now expected in June next year compared with an earlier forecast for cuts to begin in May. 

Following the remarks, took a leg lower as Treasury yields held onto their gains. 

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 81,025.71 4.28%
ethereum
Ethereum (ETH) $ 2,169.93 7.04%
tether
Tether (USDT) $ 0.999141 0.01%
xrp
XRP (XRP) $ 2.05 6.12%
bnb
BNB (BNB) $ 582.93 4.60%
solana
Solana (SOL) $ 129.58 5.32%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.192732 5.93%
cardano
Cardano (ADA) $ 0.610704 6.62%
staked-ether
Lido Staked Ether (STETH) $ 2,165.96 7.17%
tron
TRON (TRX) $ 0.221024 2.82%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 80,790.65 4.35%
litecoin
Litecoin (LTC) $ 123.98 0.24%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,589.14 7.21%
chainlink
Chainlink (LINK) $ 14.11 7.33%
avalanche-2
Avalanche (AVAX) $ 20.97 5.52%
leo-token
LEO Token (LEO) $ 9.21 1.54%
stellar
Stellar (XLM) $ 0.266626 6.97%
the-open-network
Toncoin (TON) $ 3.24 6.79%
sui
Sui (SUI) $ 2.60 9.69%
shiba-inu
Shiba Inu (SHIB) $ 0.000014 5.59%
hedera-hashgraph
Hedera (HBAR) $ 0.190548 3.72%
usds
USDS (USDS) $ 1.00 0.01%
polkadot
Polkadot (DOT) $ 4.68 2.48%
mantra-dao
MANTRA (OM) $ 7.26 0.40%
hyperliquid
Hyperliquid (HYPE) $ 19.36 3.33%
weth
WETH (WETH) $ 2,167.30 6.99%
ethena-usde
Ethena USDe (USDE) $ 0.999456 0.04%
bitcoin-cash
Bitcoin Cash (BCH) $ 283.38 3.69%
bitget-token
Bitget Token (BGB) $ 3.90 0.82%
uniswap
Uniswap (UNI) $ 7.42 7.31%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,299.99 7.13%
monero
Monero (XMR) $ 213.02 1.23%
whitebit
WhiteBIT Coin (WBT) $ 25.97 1.37%
aptos
Aptos (APT) $ 5.88 2.00%
near
NEAR Protocol (NEAR) $ 2.90 4.55%
dai
Dai (DAI) $ 0.999552 0.06%
pepe
Pepe (PEPE) $ 0.000008 9.34%
internet-computer
Internet Computer (ICP) $ 6.36 1.45%
ondo-finance
Ondo (ONDO) $ 0.919048 7.39%
susds
sUSDS (SUSDS) $ 1.04 0.05%
aave
Aave (AAVE) $ 191.05 6.71%
ethereum-classic
Ethereum Classic (ETC) $ 18.05 4.28%
okb
OKB (OKB) $ 44.92 0.78%
bittensor
Bittensor (TAO) $ 312.35 12.70%
gatechain-token
Gate (GT) $ 20.28 3.54%
mantle
Mantle (MNT) $ 0.724657 4.18%
tokenize-xchange
Tokenize Xchange (TKX) $ 29.85 1.62%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 80,936.69 4.28%
official-trump
Official Trump (TRUMP) $ 11.44 13.91%