Jerome Powell Had One Last Chance to Go Against Rate Cut and He Didn't

(Bloomberg) -- Federal Reserve Chairman Jerome Powell ’s prepared remarks suggest he is comfortable with market pricing of an interest rate cut at the end of July. This was an opportunity to push back against those expectations if he wanted to, and he did just the opposite.

He noted that the FOMC had committed to “closely monitor’’ data and “act as appropriate’’ to sustain the expansion, adding that many participants believed the case for accommodation had increased. He went further by saying that “since then,’’ based on data, “it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.’’

Powell didn’t say so explicitly, but it’s hard to read this other than he thinks a cut in July would be appropriate.

For more on Fed’s Powell Delivers Semi-Annual Monetary Policy Report to House Panel, clickhere for our TOPLive blog.

To contact the reporter on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net

To contact the editor responsible for this story: Giulia Camillo at gcamillo@bloomberg.net

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