Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Fed Chair Powell: No Plans for Interest Rate Cut Amid Strong Economy

Daniel Kim Views  

Jerome Powell, Chair of the U.S. Federal Reserve (Fed), speaking at a Canadian Economic Forum in Washington, D.C., on the 16th (local time). Washington, D.C./AP News

Jerome Powell, Chair of the U.S. Federal Reserve (Fed), has scuttled the market’s hopes for a cut in the benchmark interest rate.

According to the Wall Street Journal (WSJ) on the 16th (local time), Powell said at an economic forum in Washington, D.C., “Recent indicators have not given us more confidence. Rather, it suggests that it may take more time to gain confidence.”

Chair Powell emphasized, “However, I believe the current policy is in a good position to handle the risks the Fed faces. If inflation becomes more stubborn, we will maintain the interest rate at the current level as needed.”

Furthermore, he added, “Considering the strength of the labor market and the progress of inflation so far, it is appropriate to give more time for limited policies to take effect. The Fed is ready to cut interest rates if the economy slows sharply.”

Powell referred to the recent indicators of the Consumer Price Index (CPI) and retail sales for March. The March CPI was recorded as having risen 3.5% compared to last year. The rise exceeded market expectations and was the highest in six months. Additionally, retail sales increased by 0.7% compared to the previous month, proving that the U.S. economy is stronger than expected.

Following Powell’s remarks, Wall Street showed mixed reactions, while the dollar and gold, representing safe assets, rose. The yield on 10-year U.S. Treasury bonds traded at 4.65%, and the 2-year yield briefly broke through 5%. The CME Group’s FedWatch, which tracks the path of the benchmark interest rate, showed a 79.9% chance of a rate freeze in June. The market seems to have virtually given up on expectations of a cut in June.

Rose Mayfield, an investment strategist at Bearde Investment Bank, explained, “Powell’s remarks did little to calm the market’s pessimism. The market has reached a point where it questions whether an interest rate cut will happen this year.”

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[WORLD] Latest Stories

  • President Biden's Attempt to Appeal to Black Voters
  • Will Donald Trump's Return as US President Boost Bitcoin Value?
  • U.S. Defense Vulnerability Exposed by Rising Climate Extremes
  • U.S. and Allies Slam ICC's 'Outrageous' Warrant Against Israeli Leaders
  • From Diplomacy to Outrage: How ICC's Recent Decisions Complicate U.S. Foreign Policy
  • Middle East Unrest Pushes Investors Towards Gold and Silver

Weekly Best Articles

  • President Biden’s Attempt to Appeal to Black Voters
  • North Korean Golfers Seen Wearing Nike Gear: Contraband or Elite Privilege?
  • Will Donald Trump’s Return as US President Boost Bitcoin Value?
  • U.S. Defense Vulnerability Exposed by Rising Climate Extremes
  • Amal Clooney Advocates for Arrest Warrants in War Crimes Case Involving Israel and Hamas
  • TikTok Video Praising Kim Jong Un Blocked: Sparks National Security Concerns in South Korea
  • Online Shopping Addiction? More Americans Buying During Work
  • U.S. and Allies Slam ICC’s ‘Outrageous’ Warrant Against Israeli Leaders
  • From Diplomacy to Outrage: How ICC’s Recent Decisions Complicate U.S. Foreign Policy
  • Kang Daniel to Close His Entertainment Business Following Major Scandals
  • Why Google’s Choosing Finland for Its AI Expansion
  • Unexpected Friendship: Elon Musk and South Korean President Yoon Suk Yeol

You May Also Like

  • 1
    Why Google's Choosing Finland for Its AI Expansion

    BUSINESS 

  • 2
    Unexpected Friendship: Elon Musk and South Korean President Yoon Suk Yeol

    BUSINESS 

  • 3
    South Korean Court Orders Parents to Pay Compensation in Place of Their Minor

    ASIA 

  • 4
    Steel Showdown: U.S. Industry Braces for Surge in Chinese Imports

    ASIA 

  • 5
    iPhone 16 Color Update: What's In and What's Out This Season

    LATEST 

Popular Now

  • 1
    Marriage Reboot: Over Half of Married Couples Would Opt Out If Given a Second Chance

    LIFESTYLE 

  • 2
    North Korean Hackers Strike Again

    ASIA 

  • 3
    Target Slashes Prices on Thousands of Items: From Diapers to Dairy!

    BUSINESS 

  • 4
    China Warns: Taiwan's Push for Independence is a 'Dead-End Road'

    ASIA 

  • 5
    Apple Cuts iPhone Prices by Over 20% in China to Boost Sales

    BUSINESS 

Weekly Best Articles

  • President Biden’s Attempt to Appeal to Black Voters
  • North Korean Golfers Seen Wearing Nike Gear: Contraband or Elite Privilege?
  • Will Donald Trump’s Return as US President Boost Bitcoin Value?
  • U.S. Defense Vulnerability Exposed by Rising Climate Extremes
  • Amal Clooney Advocates for Arrest Warrants in War Crimes Case Involving Israel and Hamas
  • TikTok Video Praising Kim Jong Un Blocked: Sparks National Security Concerns in South Korea
  • Online Shopping Addiction? More Americans Buying During Work
  • U.S. and Allies Slam ICC’s ‘Outrageous’ Warrant Against Israeli Leaders
  • From Diplomacy to Outrage: How ICC’s Recent Decisions Complicate U.S. Foreign Policy
  • Kang Daniel to Close His Entertainment Business Following Major Scandals
  • Why Google’s Choosing Finland for Its AI Expansion
  • Unexpected Friendship: Elon Musk and South Korean President Yoon Suk Yeol

Must-Reads

  • 1
    Why Google's Choosing Finland for Its AI Expansion

    BUSINESS 

  • 2
    Unexpected Friendship: Elon Musk and South Korean President Yoon Suk Yeol

    BUSINESS 

  • 3
    South Korean Court Orders Parents to Pay Compensation in Place of Their Minor

    ASIA 

  • 4
    Steel Showdown: U.S. Industry Braces for Surge in Chinese Imports

    ASIA 

  • 5
    iPhone 16 Color Update: What's In and What's Out This Season

    LATEST 

Popular Now

  • 1
    Marriage Reboot: Over Half of Married Couples Would Opt Out If Given a Second Chance

    LIFESTYLE 

  • 2
    North Korean Hackers Strike Again

    ASIA 

  • 3
    Target Slashes Prices on Thousands of Items: From Diapers to Dairy!

    BUSINESS 

  • 4
    China Warns: Taiwan's Push for Independence is a 'Dead-End Road'

    ASIA 

  • 5
    Apple Cuts iPhone Prices by Over 20% in China to Boost Sales

    BUSINESS 

Share it on...