"However, with the labor market still a picture of strength, wage growth still uncomfortably high and core inflation set to decline at a glacially slow pace, the Fed certainly cannot stop tightening, nor can it downshift gears too much." "From here, it is possible that the Fed slows its tightening pace, reassured by the likely peaking of inflation and pullback in inflation expectations as oil prices have fallen," Shah said. Still, the central bank's next move may not be as large as the hike Wednesday. "Combatting four-decade high inflation will take a sustained show of strength from the Fed, rendering a soft landing an almost impossible pipe dream," said Shah.
They'll need to continue to tamp down inflation, she said. The current interest rate hiking cycle is swiftly proving to be one of the Fed's most aggressive in recent decades, Seema Shah, chief global strategist at Principal Global Investors said. "They knew this was something the market would pay attention to, and they want to take sure we notice they acknowledge the slowing down of the economy" as a result of their policy, she said. She said it was a positive the statement reflected that the economy was slowing, and the fact that it will be data dependent going forward.
#PRESS CONFERENCE FULL#
Powell said that the Fed could slow rate hikes in the months ahead and said that there could be some more financial tightening "in the pipeline" from the hikes that have already been made but maybe haven't taken full effect yet throughout the economy.Ĭhaudhuri said the market was reacting to several things, including the fact the Fed stuck to a 75 basis point hike and did not go more aggressively. The recognition is something we heard today that we didn't hear before." "They're recognizing there are two sides of this – there's a growth tradeoff to fight inflation. "I think the reason this is providing some relief to the equity market is the Fed is acknowledging that there can be an impact on growth, to the economy, based on their policy," said Gargi Chaudhuri, head of BlackRock's iShares investment strategy, Americas. Before this news conference, Biden had taken questions intermittently from reporters, but nothing at this length.Jerome Powell has signaled that the Fed is aware of the negative impact of its rate hikes on the economy, which is boosting stocks on Wednesday afternoon, according to a strategist at BlackRock. His remarks come a little over halfway through his first 100 days in office - a typical benchmark used to measure a president's early progress. In other words, if a president says he is not going to run for reelection, Congress begins to look past that president's authority, reducing his political capital.īiden also touted his early successes, including work to expand the COVID-19 vaccination program and the $1.9 trillion relief package enacted by Congress. It's advantageous for a president to say he expects to seek reelection or he becomes a lame duck too quickly. "My answer is yes," he said, noting later that that's his "expectation." Congress has been unable to pass strong gun legislation over the past two decades despite countless mass shootings in that time.īiden, who's 78 years old, also said he plans to run for reelection in 2024. His answer indicated that Biden, who in recent days urged lawmakers to pass firearm legislation, may not believe the political will is there now to pass substantive gun restrictions. Politics Biden Says He Expects To Run For A 2nd Term
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