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Powell: Possibility of Next Rate Hike Did Come Up

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March 19 – Federal Reserve Chair Jerome Powell said Wednesday that most Fed participants do not view a rate hike as the base case, noting officials discussed the two-way risk of interest rates during their meeting and also mentioned the possibility of a hike as the next policy step.
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After today's interest rate decision, the probability of a 25 basis point rate hike in April is 1%.

March 19 — CME FedWatch data shows that following today’s Federal Reserve interest rate decision: - Probability of holding rates steady through April: 97%; 25bp rate cut: 2%; 25bp rate hike: 1% - Probability of holding steady through June: 84.4%; cumulative 25bp rate cut probability: 14.4%; cumulative 25bp rate hike: 1.2% The next two FOMC meetings are scheduled for April 29 and June 17.

2 hours ago

Powell: Latest Fed Forecast Is Like a Game of Blind Man's Bluff

March 19 (Wednesday) — Federal Reserve Chair Jerome Powell said the uncertainty stemming from the Iran conflict has made the Fed’s latest economic projections feel like guesswork. “For this economic forecast summary, many have noted that if there’s one to skip, this is it,” Powell stated. “Given all the uncertainties from the conflict, we simply can’t predict what’s ahead.”

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Powell: If a new Federal Reserve Chair is not confirmed by the end of my term, I will serve as the acting Chair

**March 19** Fed Chair Jerome Powell said Wednesday that if a new Fed chair is not confirmed by the end of his term, he will serve as interim Fed chair. He added he has no intention of leaving the Federal Open Market Committee (FOMC) before the Justice Department investigation is completed, and a decision on whether he remains in office after the probe concludes has not been finalized.

2 hours ago

Powell: Believes It Is Important to Maintain a Moderate Tightening of Policy

March 19 – Federal Reserve Chair Jerome Powell said the policy rate is at the upper end of the neutral range, potentially slightly restrictive. He noted the rate currently sits at the edge between tight and not tight, adding he does not want to take overly restrictive policy action amid downside risks to the labor market. Powell emphasized it’s important to maintain a moderately restrictive rate.

2 hours ago

Powell: No rate cut if inflation making progress

March 19 — Federal Reserve Chair Jerome Powell said Wednesday that some officials favor fewer interest rate cuts this year. While the median projection for the central bank’s interest rate path remains unchanged, the number of policymakers leaning toward a smaller number of cuts has risen significantly. Powell noted progress on inflation is expected but the pace of that progress is not as fast as anticipated. He emphasized: “If there is no progress on inflation, there will be no rate cuts.” He also warned that energy inflation is an issue that cannot be taken lightly.

2 hours ago

Powell: Fully aware that a series of inflationary pressures have disrupted progress

March 19 — Fed Chair Jerome Powell stated he is fully cognizant that a wave of inflationary pressures has disrupted progress on inflation. Future inflation will be somewhat impacted, he noted, and whether we can look past energy inflation hinges on our ability to contain goods inflation.

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