Investing.com – Federal Reserve Chairman Jerome Powell is set to attend Capitol Hill on Tuesday, but the outlook for the economy’s reacceleration seen since the turn of the year will materialize. We are unlikely to support hawkish forecasts of rate hikes. Endurance or temporary remains vague at best, according to experts.
While market participants are currently pricing in about 86 basis points more rate hikes, MUFG said when Federal Reserve Chairman Jerome Powell goes to Capitol Hill for his semi-annual financial report, We do not expect Fed Chairman Jerome Powell to support further tightening on that scale.” testimony before Congress.
Powell will testify before Congress on Tuesday and Wednesday.
The Fed chairman will likely “wait to assess further data in the coming months to see if activity and inflation strength are maintained before making a strong commitment to further rate hikes,” he added.
In a February interview, Powell admitted that Fed members did not expect the January jobs report to be as “strong” as it has been, but[the process to bring inflation down]It takes a long time,” he said.[tobringdowninflationwouldtake“asignificantperiodoftime”[インフレを引き下げるためのプロセスに「かなりの時間がかかる」理由を示していると述べた。」[tobringdowninflationwouldtake“asignificantperiodoftime”
Strong economic data outflows, including January’s crash in jobs and signs of persistent inflation, have forced market participants to abandon the recent trend of “fighting the Fed.”
Investors are now forecasting a record high Fed Funds rate above the 5.1% level the Fed predicted in December, and recently rumors of interest rates nearing 6% have permeated the investment narrative. I’m here.
The start of this year’s swashbuckle for the economy has surprised many, but some suggest more data is needed to determine if the economy’s reacceleration is real or temporary. There is also
Morgan Stanley said: “Any further tightening after the May meeting will need to see evidence that the reacceleration is real.
Fortunately, investors don’t have much time to wait for a clearer outlook for the economy. His February monthly employment report, due Friday, is not expected to replicate his more than 500,000 job gains seen in February.
MUFG said: ”
But so far, the strong data we’ve seen so far are working well enough to shake supporters who were convinced a Fed rate cut was under consideration.
Morgan Stanley said it “postpones the first rate cut from December 2023 to March 2024, and then anticipates a more gradual easing cycle with rate cuts of 25bps quarterly, rather than once per meeting as before. I have,” he added.
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