Surprisingly Flexible Jerome Powell…Economic Fears Looming?

An upcoming relaxation?

On Wednesday the markets watched the data on US employment, ADP and JOLTS, to detect any signs of further easing, but the good surprise for them came mainly from the chairman of the Fed.

While in recent days, several FOMC “announcers”, including some doves, had sent harsher messages to the markets, maintaining the “threat” of a further 75 basis point rate hike at the December meeting, Jerome Powell has, in a very affirmative way, paved the way for a rate hike of 50 basis points, sweeping away any doubts on this subject.

Although he reiterated that the Fed should leave rates at a “restrictive level” for some time to come, his speech was punctuated by many more flexible statements than before with a display of confidence in the Fed’s ability to achieve a soft landing for the US economy.

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