FED’s Powell Speaking at the Senate - Forex News by FX Leaders
Powell's testimony didn't change much from last week's conference

FED’s Powell Speaking at the Senate

Posted Tuesday, June 16, 2020 by
Skerdian Meta • 1 min read

FED chairman Jerome Powell was speaking at the US Senate a while ago. He spoke after the FOMC meeting last Wednesday, which the market took as dovish. That sent the USD crashing lower that day, but that wasn’t particularly dovish on my opinion, since it didn’t change much from the previous statement. Anyway, below are the main remarks from today’s speech:

Powell Q&A From the Senate

 

  • Downturn could widen US inequality if not reversed
  • Some recent indicators have pointed to stabilization
  • Repeats that rates will stay near zero until the economy is on track
  • Full recovery unlikely until confidence is restored
  • Pandemic is hitting low-income households the hardest
  • Long-term inflation expectations ‘fairly stable’
  • Repeats that Fed is committed to using its full range of tools to support the economy
  • Direct financial help to families and business can make a critical difference and limit long-lasting economic damage
  • Economic rebound will leave us ‘well short’ of January levels
  • It’s going to take time to rebuild confidence
  • We appear to be in the beginning of the bounce stage
  • This morning’s retail sales number was more positive evidence
  • The Fed is highly motivated to get labor market back to where it was before the pandemic
  • If state and local governments are in financial straits, it can really weigh on the economy
This is similar to what he said after the FOMC decision and that’s no surprise since it was only 6 days ago. The USD is slightly higher now, but it is not running away, with Gold moving up and down.

 

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