Powell "dovish testimony … cementing rate cut expectations beginning 31 July"

Author: Eamonn Sheridan | Category: Central Banks

Earlier comments from Westpac following Fed Chair Powell testimony to Congress Wednesday.

This in summary:
  • Fed Chair Powell delivered a dovish testimony
  • cementing rate cut expectations beginning 31 July
  • said that while their baseline for solid growth is still intact, uncertainties including trade, the US debt ceiling and Brexit have increased
  • also cited slowing momentum in the global economy and that incoming data since their June meeting suggest the outlook has dimmed
  • during the Q&A Powell said that the (NFP) report did not shift their outlook and reiterated that the data since June continued to disappoint.
  • said that low inflation might prove more persistent, a change of tack from several months ago when he said low inflation was likely transitory

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