Fed Expected to Hold Rates Steady This Week; Powell's First FOMC Meeting Carries Hawkish Risk

According to Capital Economics, the Federal Reserve is widely expected to maintain interest rates this week. North America Chief Economist Stephen Brown warned that new Fed Chair Powell may deliver unexpectedly hawkish comments at the press conference, either due to communication missteps or his evolved stance since seeking the presidency. Brown cautioned that if Powell appears too dovish, concerns about Fed independence could resurface and push up long-end bond yields. The bank sees significant odds of two "insurance rate hikes" in December and early next year.
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whispervip
· 1h ago
Powell? 😅
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