Powell: Policy actions are providing support for the outlook
Powell in Denver
- Fed will soon announce measures to add to reserves supply over time, don't confuse it with QE, it's a 'technical issue'
- Policy is never on a pre-set course, will change as appropriate
- Repeats that Fed will 'act as appropraite'
- Will assess outlook and risks on a meeting-by-meeting basis
- Global developments pose risks to a favorable US outlook
- 'Time is upon us' for Fed to expand balance sheet to remain appropriate level of reserves
Powell mentioned data dependence 7 times in the speech. The Fed funds futures market is pricing in a 77% chance of a cut on Oct 30. I expect that could move 20 points in either direction depending on the US-China meeting.
The initial market take on this report is that it's slightly dovish but I don't see that. This sounds like someone who is reluctant to cut this month.