Lates News

According to the editorial committee of The Washington Post, the Federal Reserve Chairman Jerome Powell stated that he and the entire Federal Reserve are firmly committed to controlling inflation. This will be a long road, but he has already passed his first major test after taking office. Additionally, at his first meeting as chairman, Powell ended the practice of providing forward guidance, but the Federal Reserve still released a dot plot at this meeting. The latest dot plot shows that 9 members expect a rate hike before the end of the year, 8 expect no change, and 1 expects a rate cut. Powell did not submit his own forecast, stating that the market should price based on how investors interpret real-time economic data rather than what the Fed might do. He joked that all forecasts are submitted in pencil and can be erased and rewritten at any time before the next meeting six weeks later. Powell faces a delicate balancing act: demonstrating the central bank's independence while trying to avoid angering President Trump, who recently nominated him for a four-year term. Trump has not hidden his desire for rate cuts, but he recently stated that Powell should "do whatever he wants to do". Powell refused to answer whether he has had conversations with Trump since taking office. The true test of his independence will come in the coming months.