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...Bets of just one cut rose after Powell’s remarks....
...“When we do get that confidence, and we’re not far from it, it will be appropriate to dial back the level of restriction so that we don’t drive the economy into recession.”...
...Powell said in San Francisco. “Our position is we don’t know. We’ll tell you what we’ll do if inflation does come down. That’s the base case, that’s what we expect.”...
...“If future generations don’t feel hopeful about this country and their future in it, then the US doesn’t only lose the force that makes people want to invest....
...Still, the committee would avoid “dismissing data that we don’t like”, he said. Powell also downplayed the risks that the US’s persistently hot labour market would hinder the inflation fight....
...“And when we do get that confidence, and we’re not far from it, it will be appropriate to dial back the level of restriction so that we don’t drive the economy into recession.”...
...But Powell’s stern sounds yesterday could easily turn serene tomorrow....
...“I don’t have a stance on that,” Powell said. “It’s not something I’m focused on . . ....
...To mark this moment while it doesn’t yet feel like a mistake, we’ve added a festive Jerome Powell-themed design to our Redbubble store: — Jerome Powell, Christmas Saviour (black text)— Jerome Powell, Christmas...
...I don’t think that’s the base case,” Powell said in comments that prompted traders to slash their bets on a cut this spring and sent stocks sharply lower....
...Just don’t think that means new cuts are imminent....
...Economists don’t know anything, remember?...
...Summers: First of all, I think that there are those who know they don’t know, and those who don’t know they don’t know. I’m one of those who knows that he doesn’t know....
...Still, given Powell’s midweek comments the Fed looks more likely to cut later, and potentially by less this year....
...And elsewhere in the FT, don’t miss our weekend edition featuring our 25 most influential women of 2023, including my take on General Motors’ Mary Barra....
...UBS’s base case is still for two cuts this year, because of Powell’s comments....
...Put another way, am I willing to call Larry Summers bananas?...
...“Gen X is emblematic of where we are heading and things don’t look very good,” said NIRS research director Tyler Bond....
...We don’t know if this is a bump in the road or something more,” the Fed chair said, adding that he did not think recent readings had “really changed the overall story” of price pressures easing to 2 per...
...And markets apparently don’t agree with a gradual pace of rate cuts once the Fed starts....
...Jay Powell’s Federal Reserve dithered on raising interest rates until it had no choice but to act....
...“You have to take seriously the possibility that the next rate move will be upwards rather than downwards,” former Treasury secretary Larry Summers said, in a sign of the effect of the inflation data on...
...“We don’t want to decouple from China,” Paulson told the Financial Times in an interview. “China is the second-largest economy in the world....
...This week, Fed chair Jay Powell said the economic outlook had not “materially changed”....
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