blog

Latest from the Quantamize Blog

Powell Power! Fed President open to interest rate cut if warranted amid growing trade tensions

Jun 04, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

  • Federal Reserve Chairman Jerome Powell said today he is open to an interest rate cut if economic conditions warrant 
  • Powell committed to focus on the fallout from what he called “trade negotiations and other matters” and monitor whether action from the Fed is warranted
  • Powell admitted “we do not know how or when these issues will be resolved” during comments he made in Chicago
  • Powell sought to be clear with his words when we said “We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective”
  • Fed Funds recently showed the market expecting 2 rates cuts of 25bp in 2019
  • Powell was discussing the Fed’s year-long review of the Fed’s monetary policy communication, strategies and tools
  • Inflation is very much in the Fed’s focus as tepid inflation has kept interest rates low
  • Powell was discussing persistently low interest rates and said, “The proximity of interest rates to the ELB (effective lower boundary, 0%) has become the preeminent monetary policy challenge of our time, tainting all manner of issues with ELB risk and imbuing many old challenges with greater significance”  

Other recent Fed posts

  • Today’s comments follow those from St Louis Fed President Bullard’s comments saying he would be open to a rate cut if needed, Read more: Fed May Need to Cut Rates Soon on Trade Worry and Weak Inflation, St Louis Fed President Bullard says
  • Comments from the Fed's Clarita: Fed Vice Chairman Richard Clarida: We Could Cut Rates if Growth Outlook Worsens

 

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS