Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Powell's remarks sounded a touch more dovish

Today's market analysis on behalf of Michael Brown Senior Research Strategist at Pepperstone


July 2, 2024 ( Newswire) Fed Chair Powell's remarks at the ECB's annual Sintra forum this afternoon sounded, at the margin, just a touch more dovish than those made of late, with the Chair noting that the US economy has made "quite a bit of progress" back towards the 2% inflation target, while also flagging that the economy is back on a disinflationary path, as suggested by the May CPI and PCE reports. Commentary of this ilk appears to further open the door to a September rate cut, especially with Powell also flagging the risk associated with leaving it too late to deliver the first rate reduction. A softer-than-expected jobs report on Friday, were it to come to pass, would likely further cement the case for said cut, to which markets assign a roughly 70% chance - perhaps, a touch underdone.

Naturally, risk sentiment has been given a lift by Powell's comments, with equity futures back into positive territory on the day; dip buyers continue to rule the roost, with the medium-run path of least resistance continuing to lead to the upside, ably assisted by the ongoing 'Fed put', and policymakers clear desire to deliver a 25bp cut - and more beyond that - sooner rather than later. The dollar has also faced some modest headwinds, though remains well within recent ranges against most G10 peers, ranges that should persist for some time, given the relatively narrow divergences between DM central banks, and the synchronised disinflationary path that most major economies continue to take.

More Info:

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy: