Powell speaks at the Council on Foreign Relations:
- Many on FOMC see stronger case for more accommodation but also do not want to overreact to individual data points or short-term sentiment swings
- Solid fundamentals are supporting continued growth, strong job creation
- Unemployment is low, the economy is growing and inflation is near the Fed’s objective
- Although inflation is running somewhat below target, ‘we have expected it to pick up’
- Businesses and agricultural contacts have reported heightened concerns over trade developments
- FOMC’s baseline outlooks remain favorable against backdrop of heightened uncertainties
- Repeats that the Fed to closely monitor information and act as appropriately
My read is that these comments also aren’t as dovish as expected. There’s nothing here to lead me to believe a 50 bps cut is on the table in any meaningful way. Yes, we still have 5 weeks to go but it doesn’t look like Powell is hitting the panic button.
There will be a Q&A after the speech with the moderator and audience.