Analysts at Nomura point out that in his testimony to the House Banking Committee on 18 July, Federal Reserve Chair Powell was asked about the implications of recent movements in the yield curve for the outlook for the economy and monetary policy and his answer was revealing. Key Quotes “Powell focused on what long-term interest rates are telling us about how the neutral rate of interest is likely to evolve. Because term premia have remained very low, the rise in long-term interest rates over the past year seems to reflect an increase in the expected path of short-term interest rates. That may imply that the neutral rate of interest is likely higher, or will be higher, than previously thought.” “A higher neutral rate would imply that the FOMC will need to raise short-term interest rates more than previously thought to contain the US economy’s considerable momentum.” “Powell may have been signaling that he expects the FOMC to raise shortterm interest rates more over the next year or two than market participants currently expect.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD Technical Analysis: 200-hour MA hurdle could be a tough nut to crack FX Street 5 years Analysts at Nomura point out that in his testimony to the House Banking Committee on 18 July, Federal Reserve Chair Powell was asked about the implications of recent movements in the yield curve for the outlook for the economy and monetary policy and his answer was revealing. Key Quotes "Powell focused on what long-term interest rates are telling us about how the neutral rate of interest is likely to evolve. Because term premia have remained very low, the rise in long-term interest rates over the past year seems to reflect an increase in the expected path of short-term interest rates.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
