Powell明天又要讲话了！
Fed Chair Powell can keep the rally going when he speaks Tuesday.
That’ll be a switch from when he spoke last month, saying the economy requires more support and sending stocks reeling.
One difference now is that Powell may use the latest increase in Treasury yields to reiterate the Fed’s desire for lower borrowing costs. After all, the purpose of quantitative easing is to drive down long-term interest rates. As for the latest stimulus talks, House Speaker Pelosi and Treasury Secretary Mnuchin are continuing their discussions with little sign they are close to a deal, despite the urging of President Donald Trump for an agreement.
The latest comments out of the Fed highlight the central bank’s preference for easy policy. Cleveland Fed President Mester said she favors considering whether to concentrate the central bank’s bond buying more on longer-dated maturities. Chicago Fed President Evans said he’d welcome 2.5% inflation and that policy makers shouldn’t be tempted “to back off the overshoot too early in the process.”
Look for a dovish presentation from Powell that can benefit both stocks and bonds.
Fed Chair Powell can keep the rally going when he speaks Tuesday.
That’ll be a switch from when he spoke last month, saying the economy requires more support and sending stocks reeling.
One difference now is that Powell may use the latest increase in Treasury yields to reiterate the Fed’s desire for lower borrowing costs. After all, the purpose of quantitative easing is to drive down long-term interest rates. As for the latest stimulus talks, House Speaker Pelosi and Treasury Secretary Mnuchin are continuing their discussions with little sign they are close to a deal, despite the urging of President Donald Trump for an agreement.
The latest comments out of the Fed highlight the central bank’s preference for easy policy. Cleveland Fed President Mester said she favors considering whether to concentrate the central bank’s bond buying more on longer-dated maturities. Chicago Fed President Evans said he’d welcome 2.5% inflation and that policy makers shouldn’t be tempted “to back off the overshoot too early in the process.”
Look for a dovish presentation from Powell that can benefit both stocks and bonds.