no more tightening but no imminent rate cuts
Powell said something very important.
He doesn't want to cut rates on a one touch of 2%. He wants to see it sustainably at that level. Unless unemployment is elevated.
This is the right policy for the fed. It maintains the feds dual mandate and ensures inflation is intact dead.
It is a big reversal of the proactive cut narrative the fed alluded to at the last meeting that sent markets ripping higher.
Powell said something very important.
He doesn't want to cut rates on a one touch of 2%. He wants to see it sustainably at that level. Unless unemployment is elevated.
This is the right policy for the fed. It maintains the feds dual mandate and ensures inflation is intact dead.
It is a big reversal of the proactive cut narrative the fed alluded to at the last meeting that sent markets ripping higher.