Powell Headlines ahead of Testimony

  • Fed’s Powell: Since June Meeting, Uncertainties Continue to Weigh on U.S. Outlook
  • Powell Cites Risks of Trade Tensions, Global Growth, Low Inflation in Testimony to Congress
  • Powell: Baseline Outlook Is for Economic Growth to Remain Solid
  • Powell: Labor Market Remains Healthy
  • Powell: Benefits of Strong Job Market Have Been More Widely Shared in Recent Years
  • Powell: Independence Allows Fed to Pursue Statutory Goals Based on Objective Analysis, Data
  • Powell: Uncertainties in Outlook Have Increased in Recent Months
  • Powell: Weakness in Major Foreign Economies Could Affect U.S.
  • Powell: Business Investment Seems to Have Slowed Notably
  • Powell: Overall Growth in 2Q Appears to Have Moderated
  • Powell Cites Risk That Weak Inflation Could Be More Persistent Than Anticipated
  • Since the Fed indicated last month a willingness to possibly cut interest rates soon, the US and China have resumed trade negotiations and a lot of economic data have come out, including a very strong US jobs report and signs of firming inflation. What does it all mean from the Fed’s view? Not much, according to Chairman Jerome Powell. “Since [the Fed’s June 19 statement], based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook,” Powell said. “Inflation pressures remain muted.”

    Net result:

    The U.S economic outlook has not improved in recent weeks, an indication that the Fed could be prepared to cut its benchmark short-term interest rate when officials meet later this month.

    Reaction:

    USD (€1.1240, ¥108.71, £1.2500 and C$1.3101) under pressure, equities higher, yields lower and gold futures higher.

    More to follow

    This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell