Fed Chairman Powell paints a gloomy picture of the economy while without a pledge to set negative rates, the gloom could send stocks down and the dollar up, FXStreet’s analyst Yohay Elam reports.
Key quotes
“The text of Powell’s speech consists of concerns about long-lasting damage, lower productivity, and other dire projections.”
“The world’s most powerful central has surprised those that suggested it has run out of course again and again. Even with unlimited Quantitative Easing, the Fed may find additional tools.”
“Powell is not warming up to negative rates as he said that the bank’s view has not changed – and that all members said it was no attractive tool. That is set to keep equities under pressure and the dollar up.”
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