{"id":2011983,"date":"2023-08-25T12:41:03","date_gmt":"2023-08-25T16:41:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/feds-powell-says-central-bank-may-need-to-raise-interest-rates-further\/"},"modified":"2023-08-25T12:44:40","modified_gmt":"2023-08-25T16:44:40","slug":"feds-powell-says-central-bank-may-need-to-raise-interest-rates-further","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/feds-powell-says-central-bank-may-need-to-raise-interest-rates-further\/","title":{"rendered":"Powell: Fed may need to increase rates more."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffeds-powell-says-central-bank-may-need-to-raise-interest-rates-further%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2011983&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><strong>NEW YORK\/LONDON (Reuters) \u2064\u2013<\/strong> The U.S. Federal Reserve may need to raise interest rates further to ensure inflation is contained, U.S. Federal\u2062 Reserve Chair Jerome Powell said on Friday, in remarks\u200b that balanced declines in the pace of price increases over the past year \u2064with the surprising overperformance \u200cof \u2064the U.S. \u2063economy.<\/p>\n<p><strong>\u201cIt is the Fed\u2019s job to bring inflation \u200cdown to \u200cour 2% goal, and we will do so,\u201d<\/strong> Powell said. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<h2>MARKET REACTION:<\/h2>\n<p>STOCKS: The S&#038;P 500 edged higher and was \u2063recently up 0.1%<\/p>\n<p>TREASURIES: \u200bBenchmark 10-year yields\u200b [US10YT=RR] were 4.27%,\u2062  up 4 basis \u200cpoints. The 2-year [US2YT=RR] was at 5.09%, up 7 \u2062basis points. \u200d <\/p>\n<h3>COMMENTS:<\/h3>\n<p>CHRISTOPHER\u200b HODGE, CHIEF ECONOMIST, \u2064US, NATIXIS, NEW \u2062YORK<\/p>\n<p>\u201cHe was very quick\u2064 to assure\u200d markets that the\u2062 Fed won\u2019t be hanging any \u2018mission accomplished\u2019 banners any time soon, but still highlighted the need to data dependence. \u2062Clearly softer labor and economic indicators are needed before any\u200d pivot in tone, but just reiterating the higher\u200c for longer narrative by itself restricts financial conditions \u200bby pushing up mortgage\u2064 and corp borrowing \u200drates (see the Fed\u2019s FCI-G and movements along the curve in \u200drecent weeks) and may alleviate the need for more \u2063hikes.\u201d <\/p>\n<p>\u201cIt was a change in emphasis, highlighting the potential\u200c need for more tightening, but it doesn\u2019t change\u200c the fact that \u2062softer incoming data will keep the fed comfortable with current levels and allow previous hikes and \u2062current conditions to work their way through the system.\u200d I think\u200b the \u200dFed \u200dis legitimately split on what to do now making incoming data, starting with next week\u2019s NFP and \u200bJOLTS,\u200c even more important.\u201d<\/p>\n<p>MICHAEL GREEN, CHIEF INVESTMENT STRATEGIST, SIMPLIFY ASSET MANAGEMENT<\/p>\n<p>\u201cThe best\u200d way to think about it is: it was largely non information. It is an acknowledgment of some\u2062 progress that has been \u2062made. It\u2019s a reiteration that the Fed \u2063at \u200cbest is going to go very slowly and\u2062 cautiously\u201d<\/p>\n<p>\u201cPeople had been prepared for volatility if \u2062that\u200d volatility fails to emerge. Then the big winner here are people who had actually sold insurance \u200cin the market\u201d<\/p>\n<p>\u201cI\u200b don\u2019t think\u200b anyone\u2019s going to meaningfully change their positions after this speech\u201d<\/p>\n<p>ANDRE BAKHOS,\u2062 MANAGING \u200dMEMBER, INGENIUM ANALYTICS LLC, PLAINSBORO, NEW JERSEY.<\/p>\n<p>\u201cAugust has been a difficult month for\u2062 the market, so it is \u200bhungry for news that will help reverse the trend. Investors are hanging on \u200cto every word, but the main takeaway is that Powell signaled that the Fed would raise rates if needed. \u2063Around that concept, we\u2019re going get intraday volatility.\u201d<\/p>\n<p>CARSTEN BRZESKI, GLOBAL HEAD OF MACRO, ING, FRANKFURT<\/p>\n<p>\u201cThe speech was as expected. I don\u2019t think it\u2019s overly dovish as\u200b the market reaction suggests. A pause in September is likely but this is not an official end to \u200bhikes. This is the best Powell\u2064 could do in the \u2064current circumstances.\u201d <\/p>\n<p>\u201cThe alternative would\u2062 have been to sound very hawkish, triggering turmoil, \u200dor sound \u2063very dovish, which is not\u2062 good if inflation comes back, so this\u2062 strikes a good balance. I think (ECB\u200d chief Christine) Lagarde will do the same later.\u201d <\/p>\n<p>JOSEPH LAVORGNA, CHIEF U.S. ECONOMIST, SMBC \u2062NIKKO SECURITIES, NEW YORK<\/p>\n<p>\u201cI have \u200dhim leaning a little bit more on the hawkish side because it seems\u2063 to me that while they\u2019re talking risk management, I just don\u2019t see anything that suggests that \u200dthey\u2019re going to cut rates\u2062 anytime soon.<\/p>\n<p>\u201cHe\u2019s finding the flexibility to hike more, not buying \u2064the\u2064 flexibility\u2062 necessarily\u2062 to ease. \u200cIt seems to me it\u2019s between\u200c hiking more and staying on hold rather than, \u2018OK we\u2019re kind of where we need to be \u2062and policy is symmetrical.\u2019<\/p>\n<p>\u201cBut, \u200bI don\u2019t think another hike is coming.\u201d<\/p>\n<p>STUART COLE, CHIEF MACRO ECONOMIST, EQUITI CAPITAL, LONDON\u201cPowell\u2019s\u200b message is largely as expected, that is progress is being \u2063made in the fight against CPI but it is too\u200c soon \u200dto\u2063 say the battle is won\u200b and the Fed is prepared to hike further if necessary.\u201d<\/p>\n<p>\u201cMy hunch is that he is being seen\u200c as not as hawkish as had been feared.\u201d<\/p>\n<p>QUINCY KROSBY, CHIEF GLOBAL STRATEGIST,\u2063 LPL FINANCIAL, CHARLOTTE,\u200b NORTH CAROLINA<\/p>\n<p>\u201cHe is outlining the backdrop for the path of inflation, the trajectory that we have \u2064witnessed. But overall his core message is that two months, three months does not necessarily make the trend. There is still quite a bit\u200d to focus on. The 12-month trajectory is still elevated\u2026 He said there\u2019s still work\u2062 to be done. And this is not different\u2064 from some of the\u200c press conferences we have seen following the last couple of rate hikes. \u200dThere\u2019s nothing \u2063in this that should be a surprise or\u2063 a shock. He is staying close \u2063to his\u2063 message, and that\u2063 is we cannot\u200c declare victory \u2064yet.\u201d<\/p>\n<p>DAVID WAGNER, PORTFOLIO MANAGER, APTUS CAPITAL ADVISORS, CINCINNATI, OHIO<\/p>\n<p>\u201cHistorically, the average \u2063Jackson Hole event doesn\u2019t generate \u2064more\u2064 market volatility than \u2062any other trading day. But,\u200d much\u2062 like \u2063we\u200c expected,\u200d Jerome Powell \u2064took a pass this year as he \u200dkept \u200dhis message clear and concise. He remained hawkish and held\u200d policy at restrictive \u200dlevels until we brought inflation down. Even though inflation has come \u200cdown, it remains too high.\u201d \u201cGiven the market\u2019s expectation\u2064 of 100bps worth of cuts \u2063by the \u200bend of \u201924, we think that this meeting will continue to fly in the face of investors\u2064 as they will have to digest\u200c higher rates\u200b for longer, which can ultimately reintroduce the right tail risk of interest\u2063 rates into the market causing valuations to contract.\u201d \u201cPowell basically\u2064 disabused investors that cuts are \u200bright around\u200c the corner, with ample retread on \u200bhow far they\u200d still are from their price objective.\u201d<\/p>\n<p>BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, WISCONSIN<\/p>\n<p>\u201cThere were many words, \u200dbut little was said. Rather than last year\u2019s short but brutal\u2062 speech, Powell opted for a longer and calmer speech. The key word was \u201ccarefully.\u201d They\u200b will proceed carefully instead of forcefully.\u201d<\/p>\n<p>\u201cHe was close to breaking his arm patting\u2062 himself \u2064on the\u200c back for orchestrating a \u2063soft-landing. The jury is still out on \u200bthat, though.\u2064 Long and \u200dvariable lags aren\u2019t dead.\u201d<\/p>\n<p>KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO<\/p>\n<p>\u201cOn balance, this is a modestly less hawkish speech than\u2063 markets had feared. Powell recycled a lot of the \u201chigher for longer\u201d language \u2063used last year, but also said policymakers will \u201cproceed carefully as we decide whether to tighten further \u200dor, instead, to \u2063hold the policy rate constant and await further data\u201d\u200b \u2013 messaging that clearly puts the\u200d central bank \u2064on a data-dependent footing in\u2062 the near term.\u201d<\/p>\n<p>\u201cPowell\u2019s words\u2064 lacked \u200cthe drama associated with previous speeches \u2062from Bernanke and Draghi, and even fell short of the directness found in \u200dhis own appearances,\u2063 but we \u2062would argue this is a\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/feds-powell-says-central-bank-may-need-to-raise-interest-rates-further\/\" title=\"Powell: Fed may need to increase rates more.\">good thing \u2013 \u200bconditions remain<\/a> too uncertain for black-and-white messaging, and markets should welcome \u2063a \u2064more gradualist\u2063 and incremental approach at this point in\u200d the tightening cycle. Odds on\u2064 another move by year end\u2062 should come down, and the dollar looks likely to lose \u200csome altitude \u2013 particularly relative to \u2064the euro.\u201d<\/p>\n<\/p>\n<p>(Compiled by the Global \u200bFinance &#038; \u2064Markets Breaking News \u200cteam)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/feds-powell-says-central\/attachment\/the-opening-dinner-of-the-kansas-city-feds-annual-economic\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Trump descends into the lair of\u2062 DA Fani Willis, while BRICS expands and the DOJ \u2064sues SpaceX<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Former President Donald Trump<\/strong> \u2063 was the talk of the country Wednesday evening after his viral interview with former Fox News host Tucker \u2064Carlson. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Paws of War<\/strong> is\u200d a non-profit, charitable organization that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-replaces-lawyer-hours-before-hours-before-surrender\/\" title=\"Trump replaces lawyer just before surrender.\">assists military members<\/a> and their pets. \u2064 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>45th President Donald Trump<\/strong> is set to turn himself in and will\u00a0 be processed at the Fulton County jail, in the Georgia 2020 election case. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Hannah Lang (Reuters)<\/strong> \u2013 Cryptocurrency brokers, including\u200d exchanges and payment processors,\u2063 would have\u2062 to report\u2064 new information on users\u2019 sales and\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Hannah Lang (Reuters)<\/strong> \u2013 Cryptocurrency brokers, including exchanges\u200d and payment processors, would have to report new information on users\u2019 sales and\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Aditi Shah, Aditya Kalra and Nikunj Ohri NEW DELHI (Reuters)<\/strong> -India is working on a new electric vehicle policy that would\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Aditi Shah, Aditya Kalra and Nikunj \u200bOhri NEW DELHI (Reuters)<\/strong> -India is working on a new electric \u2063vehicle\u200b policy that would\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Federal Reserve Chair Jerome Powell stated that to control inflation, the Fed may have to increase interest rates. He acknowledged the decrease in price growth but also highlighted the strong performance of the U.S. economy.<\/p>\n","protected":false},"author":66,"featured_media":2011984,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2011983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2011983"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011984"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}