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Preview of Federal Reserve Decision: Powell's Press Conference May Bring Hawkish Surprise
Summary: According to sources, the press conference of Federal Reserve Chairman Powell is the most anticipated event in the market. Currently, in the absence of government data, Chairman Powell is expected to maintain the status quo and not reveal too much in terms of forward guidance. The only potential surprise for the market would be his ...
According to sources, the press conference of Federal Reserve Chairman Powell is the most anticipated event in the market. Currently, in the absence of government data, Chairman Powell is expected to maintain the status quo and not reveal too much in terms of forward guidance. The only potential surprise for the market would be his uncertainty about a rate cut in December, which could be seen as a hawkish surprise as the market is currently confident about a December rate cut. The immediate market reaction theoretically would be: US stocks falling, US bond yields rising, short-term bond yields rising faster than long-term bond yields, US dollar significantly strengthening, and precious metals like gold and silver declining. On the other hand, if Powell's stance on a December rate cut remains unchanged, the market will continue to fluctuate based on the development of the trade situation.
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Link: Preview of Federal Reserve Decision: Powell's Press Conference May Bring Hawkish Surprise [Copy]
