Investors globally get a chance to hear Federal Reserve Chair Jerome Powell just before the U.S. central bank’s blackout period begins ahead of its next interest-rate decision. Federal Reserve is meeting on October 31- November 1 to decide on the rate hike decision. Powell will take part in a discussion on Economic Outlook on Thursday, October 19 at 12:00 p.m. at the Economic Club of New York.
The Fed is most likely not expected to abandon its 19-month campaign to raise borrowing costs, despite warnings that the economy is expanding too quickly to adequately contain inflation and surging bond yields that could potentially restrain economic activity. Jerome Powell, the head of the US central bank, faces a significant communication task as a result.
Patrick Harker, president of the Federal Reserve Bank of Philadelphia, stated recently that the central bank should refrain from raising borrowing costs in order to put more strain on the economy.
Following dovish indications from key policymakers in recent weeks, markets predict that Powell’s planned speech on Thursday may provide additional clarity on the U.S. central bank’s rate position.
Also Read: Federal Reserve Chair Jerome Powell speaks today – Here’s what to expect
Senior Fed officials have stated that Powell will deliver prepared remarks and respond to questions from a moderator at the midday event in New York. Beginning the second Saturday before policy meetings start, Fed officials are not permitted to make any public remarks about the state of the economy or the future direction of policy.
Investors’ growing list of worries is whether the Federal Reserve has finished raising interest rates and how the US Congress can avert a government shutdown. Sharp swings in interest rates and an escalating macro environment have “set the stage” for increased global volatility.
Global markets are stable with the US and its allies attempting to contain the Israel-Hamas war. In the US, there is a lot of uncertainty that could cause further market fluctuations. The biggest one-day selloff of 30-year bonds since the start of the pandemic was sparked last week when a hot inflation report increased bets on another rate increase from the Fed, outpacing haven flows in the hours that followed.
On October 19, 9 AM, Vice Chair Philip N. Jefferson will give the opening remarks at the 18th Central Bank Conference on the Microstructure of Financial Markets, Washington, D.C. to be followed by Federal Reserve Chair Jerome Powell’s discussion. At 1:30 p.m., Vice Chair for Supervision Michael S. Barr will present a speech on Stress Testing at the 2023 Federal Reserve Stress Testing Research Conference, Boston, Massachusetts.
