US Federal Reserve Chair Jerome Powell presented little change in attitude from his recent remarks. The economy has repeatedly been in a good place and has become a patient room before considering easing monetary policy to the central bank.
“For the time being, we are well positioned to wait to learn more about possible economic courses before considering policy 3D adjustments,” Powell said in a prepared statement in a six-monthly monetary policy report to Congress.
Today’s testimony is particularly noteworthy, given consultations from Fed Governors Chris Waller and Michelle Bowman this week. Both said they support the Federal Reserve’s fee cuts at the next meeting. So far, Powell has given no indication that he is considering such a move.
A break with Powell is not necessarily the main news as President Trump continues to make clear that he is unhappy with easing monetary policy.
According to CME FedWatch, rate reduction odds in July remained fairly slim, at just 18.6%. If you move to September, the chances of one or more rate reductions will jump to 80% or more.
A question and answer session with the House Committee is currently underway, and this story will be updated with breaking news from the event.
