Michael Feroli, Chief U.S. Economist at JPMorgan Chase, said Chair Jerome Powell’s latest comments “solidified expectations for further rate cuts, starting at its next meeting Oct. 28-29.”
Feroli noted that markets had already been confident the Federal Reserve was leaning toward easing policy, but Powell’s language left little ambiguity. “While there was little doubt the Fed was angled to cut rates at its next meeting, today’s remarks were strong confirmation of that expectation,” he said.
Powell’s remarks reinforced investors’ belief that the central bank is preparing to lower borrowing costs again after a string of softer inflation and labour-market readings, cementing bets for a late-October reduction.
More on Powell:
- Fed chair Powell: Future path of monetary policy driven by data and risk assessments
- Powell Q&A:A risk that slow pass-through of tariff start to look like persistent inflation
- More from Powell: Further declines in job openings might start to show up in employment
This article was written by Eamonn Sheridan at investinglive.com.
