Watch Jerome Powell speak after the September Fed meeting closes

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Powell addresses official Fed trade controversy

Jerome Powell said he was previously “unaware” of details of the business activity of some regional Fed chairmen which have come under scrutiny over the past week.

Powell said the central bank would undergo a review of the ethics policy surrounding the trade by Fed officials.

“We’re going to put all the facts together and look for other ways to tighten up our rules and standards,” Powell said.

-Jesse Pound

Markets retreat from highs

Equity and bond markets retreated from their earlier levels as Jerome Powell provided more details on the Fed’s outlook. The Dow Jones is now up 380 points, after rising more than 500 points earlier this hour, and the 10-year Treasury yield is now slightly positive on the same day after falling more than 2 basis points more early. Yields move inversely with prices.

-Jesse Pound

Many Fed members believe “substantial further progress” has already been made in US employment

Many members of the Federal Reserve believe that employment in the United States has already met central bank standards for “further substantial progress,” Fed Chairman Jerome Powell said at a conference. hurry.

“Many committee members feel that the test for substantial progress in employment has been met… I guess my own view is that the test for further substantial progress in employment is almost met,” said Powell.

Hannah Miao and Tanaya Macheel

Powell says bond reduction could end by mid-2022

Fed Chairman Jerome Powell at a press conference said central bank members expect the bond buying program to cut back in the era of the pandemic ending around mid-July. 2022.

“Participants generally consider that as long as the recovery stays on track, a phase-down process that ends around the middle of next year is likely to be appropriate,” said Powell.

Hannah miao

Powell says cut is not ‘direct signal’ for rate hikes

Powell reiterated his earlier position that the onset and pace of Fed asset purchases “will not be intended to convey a direct signal about when to take off interest rates.” The central bank said the Fed will use a different and stricter test to determine when to raise rates.

-Jesse Pound

Fed “still very accommodating” after September meeting update, says Peter Boockvar

Although the Federal Reserve has said that a reduction in its asset purchase program “may soon be warranted,” the central bank’s outlook remains focused on stimulating economic growth rather than controlling the economy. inflation, according to Peter Boockvar, chief investment officer of Bleakley Advisory Group.

“While a cut announcement, perhaps, comes in November, that they didn’t do it today only reflects a committee that is still very accommodating,” Boockvar said after the central bank released. a statement following its September meeting.

Hannah miao

Half of Fed members now see 2022 rate hike

Half of Federal Reserve members are now forecasting the first interest rate hike next year, according to the so-called dot plot of projections released following the September Federal Open Market Committee meeting.

Nine of the 18 FOMC members expect a rate hike in 2022, according to Wednesday’s projection, down from seven in the June forecast.

All but one of the members expect at least one rate hike by the end of 2023. Thirteen members expect two rate hikes through 2023.

Hannah miao

Powell speaks now

President Powell began his opening address.

-Jesse Pound

Fed remains vague on next steps

Even though the Fed signals that a slowdown could be near, the market is still waiting for details, said Seema Shah, chief strategist at Principal Global Investors.

“The Fed’s message is tantalizingly flowing … The market is already anticipating a rate cut now and has quickly turned its attention to the date of a possible rate take-off and the pace of rate hikes which, s ‘it is, is a bit more modest than the markets had feared, ”Shah said.

-Jesse Pound

Stocks hold gains broadly, 10-year Treasury yield falls

US stocks largely held up their gains, and the 10-year Treasury yield fell immediately after the Federal Reserve’s Open Market Committee statement issued after the September meeting.

The Dow Jones Industrial average rose about 450 points and the benchmark 10-year Treasury yield fell about 2 basis points to 1.304% at 2:10 p.m. ET.

Hannah miao

Fed says reduction in bond purchases “may soon be justified”

The Federal Reserve said on Wednesday it may withdraw its asset purchase program during the pandemic a little earlier than market participants expected.

“If progress continues broadly as planned, the committee believes that moderation in the pace of asset purchases may soon be warranted,” said the post-meeting statement of the Federal Open Market Committee.

The central bank has kept benchmark interest rates close to zero.

Hannah miao

Markets show signs of strength ahead of Fed statement

The stock market kept strong gains for the day shortly before 2 p.m., with the Dow Jones higher by more than 300 points and the S&P 500 and Nasdaq Composite up 0.9% and 0.7%, respectively. Meanwhile, the 10-year US Treasury key yield traded slightly for the day at nearly 1.31%. Yields move inversely with prices.

-Jesse Pound

Fed examines cloudier economic outlook

The Federal Reserve’s September comes against an economic backdrop where the history of the recovery in the United States has become more complicated.

In recent months, the US economy has shown signs of weakening growth amid the spread of the delta variant of Covid-19. However, inflation figures remain well above the 2% level the central bank says it wants to average over time, leading some to question whether Jerome Powell’s forecast of a “transitional” rate price increase will be true.

-Jesse Pound

Focus on the Fed’s forecast at 2 p.m.

The September Fed meeting was widely anticipated as the central bank is expected to signal that it is about to announce a cut to its bond buying program. This will be the first big step away from the policies it has put in place to counter the impact of the pandemic on the economy and financial markets. But markets will focus squarely on what the Fed is now forecasting for interest rates and inflation.

-Patti Dom

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