Powell: Policy actions are providing support for the outlook

Author: Adam Button | Category: Central Banks

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.

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