Michael Hanson, Head of Global Macro Strategy at TD Securities, points out that speaking at the Dallas Fed, Chair Powell faced a range of questions and largely reiterated his past views on the economy and policy.
Key Quotes
“Overall, Powell gave no explicit indication that the Fed was planning to slow the pace of rate hikes or pause. He did note that he found the recent slowdown in global growth “concerning,” even as it had only slowed “a bit.” Meanwhile the US economy “is in such a good place right now” in his view. Powell also reiterated that Fed was trying to lengthen the expansion rather than take away the punchbowl.”
“Although Powell had many opportunities to lean toward a more cautious policy stance, he largely stuck to his guns. When asked specifically about various risks to the outlook, Powell mostly just said that the Fed was “monitoring” them. To the extent the markets were looking for signals of a less aggressive Fed, Powell’s remarks mostly disappointed. This gave a mildly hawkish tone to the evening.”
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