Takeaways from the Powell presser:
-There's a high bar right now for the Fed to cut rates, but there's an even higher bar for the Fed to resume rate hikes
-He's still expecting inflation to come down, in large part because of the shelter disinflation everyone has expected
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Nick Timiraos
NickTimiraos
Powell on taking politics into account when setting interest rates: "We just don't do that .... If you go down that road, where do you stop?"
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Heather Long
byHeatherLong
Fed Chair Powell summary today:
1) A rate hike is very unlikely
2) His base case is to cut rates later this year, but it’s not a given
3) No sign of stagflation
4) 3% inflation is not acceptable
#Fed #economy pic.twitter.com/s6UwoWoSuz
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Heather Long
byHeatherLong
Fed Chair Powell says “it is UNLIKELY” the next move will be a rate hike
“It is likely it will take longer” to be confident before rate cut, he emphasizes pic.twitter.com/rmCSXoNxTE