Markets would like Fed Chairman Jerome Powell to clarify whether the Fed sees itself at the beginning of a serious, longer-term rate cutting cycle.
. That would be taken as a sign of pending recession if it inverts again and stays that way for some time.
Michelle Meyer, head of U.S. economics at Bank of America Merrill Lynch, said she is looking for Powell to comment on the yield curve inversion and the market turbulence. "Is he more concerned about the outlook?" she said. "Has he become more concerned since the meeting, given the slowdown in global data, the increase of risks in the trade war and the recent significant moves in the market" she said.
"Is Powell going to stick to the midcycle adjustment? It's only been three weeks, but you throw in the sharp inversion of the yield curve and the extra consumer tariffs ... is he going to let the market whipsaw him? We've seen a big inversion and a sharp drop in rates since that meeting," said Peter Boockvar, chief market strategist at Bleakley Advisory Group.
"Is it going to be an academic speech? Or is he going to pull a Ben Bernanke and use Jackson Hole as his FOMC venue. It was really [former Fed Chairman] Bernanke who most notably [used the meeting to discuss policy] when he laid out the case for QE twice," Boockvar said.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Trump Throws a Fit, Blames “Clueless Jay Powell” for Market Sell-OffThe president spent Wednesday afternoon screaming about the “CRAZY INVERTED YIELD CURVE” and demanding the Federal Reserve clean up his trade war-induced mess.
Baca lebih lajut »
Fed Poised To React Swiftly To Persistent Yield Curve Inversion, With More Rate CutsGlobal stocks markets slumped sharply on Wednesday and kept tumbling Thursday without much in the way of immediately negatively headlines, with one exception—something funky was happening in another, even more important sector of finance: bonds.
Baca lebih lajut »
Markets register a shock, but is Trump right to blame the Fed?It takes a lot to kill an economic expansion, typically requiring a major shock ...
Baca lebih lajut »
DoubleLine CEO Jeffrey Gundlach warns Fed rate cuts will not stop U.S. recessionJeffrey Gundlach, chief executive of DoubleLine Capital, warned on Wednesday tha...
Baca lebih lajut »
Trump tweets on Fed, China amid market's fallPresident Trump blamed the Federal Reserve for Wednesday's Dow plunge of 800 points, calling Fed Chairman Jerome Powell 'clueless' in an afternoon tweet. The panel discusses Trump's tweeting and the market drop.
Baca lebih lajut »
Economist El-Erian: Fed now has no choice but to cut rates or risk disrupting marketsCentral bankers are being 'held hostage' by markets, economist Mohamed El-Erian says.
Baca lebih lajut »