Jerome Powell

Jerome Powell

Jay Powell Sets The Stage For Monetary Tightening

Juan Pedro Marín-Arrese | The hawkish and straightforward message Jerome Powell delivered yesterday surprised analysts and markets alike. They expected a non-committal press conference following a routine FOMC meeting. Instead, Powell unfolded the planned roadmap for monetary tightening. He even announced a rate hike in March, breaking the rule of refraining from providing precise tips on future action, coupled with a sharper than expected increase in federal funds rates. It…


Biden wins celebrations

Biden Announces Stimulus Plans Worth $1,9 Bn, While Powell Clears Up Doubts Over QE

Monex Europe | The dollar has been regaining ground since yesterday amid concerns that President-elect Joe Biden’s $1.9tn stimulus plan may fail to win broad-based support, as Republican opposition is possible over the big-ticket spending. These concerns are reinforced by the voting procedure in the Senate: fiscal stimulus requires 3/5ths of the votes (60 votes) in order to pass. Among the elements in the proposal are direct payments of $1,400, on top of the $600 approved in December, $350bn for state and local governments, $160bn in vaccination funding, $130bn to help schools reopen, and additional employment benefits.


Jerome Powell

Jerome Powell’s Penelope tactics

J. P. Marín-Arrese | Once again, Jerome Powell played down the need for monetary easing in the press conference following the Fed’s rate cut decision. His unconvincing delivery led Mr Trump to heap scorn on his uninspiring performance. For once, his bitter recriminations were fully justified.




Jerome Powell

Jerome Powell wrestles with an intricate conundrum

J. P. Marín-Arrese | US Federal Reserve Chairman Jerome Powell faces the dilemma of choosing the right path, confronted with conflicting data and forecasts. While the US economy grew at a booming 4% rate in the first quarter, inflation trails far behind the Fed’s objective and salaries fail to pick up despite historically low levels of unemployment. Moreover, the trade tug-of-war with China is denting confidence in consumers and investors alike. Should the conflict turn worse, the economy might suffer a harsh blow.



Jerome Powell

Jerome Powell Does Not Believe The Current Fiscal Policy Is Sustainable

The Federal Reserve raised its benchmark interest rate by 25 basis points. The effective rate will evolve in a corridor between 2% and 2.25%. The dots graph reflecting monetary policy committee members’ expectations suggests 3 rate increases in 2019, 1 in 2020 and none in 2021. As pointed by Philippe Waechter from Natixis IM, this profile, for 2019 and 2020, is unchanged from last June forecasts.



When it comes to sending messages to the market, central banker develop their own language.

Central Bankers’ Language Does Matter

J.P. Marin-Arrese | When it comes to sending messages to the market, Jerome Powell is proving less conventional and more straightforward than Mario Draghi. The former added fuel to the fire by delivering a forthright appraisal of the strength of US growth, the latter announced the ECB would scrap the QE scheme by the end of the year.