Fed Chair Powell reiterates that a strong majority of Fed policymakers see two or more rate rises by the end of this year
Inflation:
- Core PCE likely rose 4.7% Y/Y in May, overall PCE estimated to have risen 3.9% (note: Data released on Friday)
- Repeats that inflation is above target.
- Process of getting inflation to target stil has a long way to go.
Labour market:
- Repeats that the labour market is tight.
Real Estate:
- Some housing market indicators have turned up.
- Housing sector still far below peak.
Financial Sector/Credit:
- Bank stresses that emerge in March may lead to further tightening of credit conditions.
- Economy faces headwinds from higher credit conditions
- Must not take financial system stability for granted
- Banking system strains have eased, deposites have stabilised.
Policy Outlook:
- Will take time of full effects of monpol to be realised.
Analysis details (07:38)
- Perhaps the most interesting features within these remarks are the expectations for May PCE data, due Friday 30th June; Powell said Core PCE likely rose 4.7% Y/Y in May (which would be in line with the current consensus), overall PCE estimated to have risen 3.9% Y/Y (current consensus looks for 4.6%)
29 Jun 2023 - 07:31- Important- Source: Newswires
Subscribe Now to Newsquawk
Click here for a 1 week free trial
Newsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include:
- Real-time audio coverage from 0630 to 2200 London time plus Asia-Pac 2200 to 1000 London time
- Teams of analysts covering equities, fixed income, FX, energy, and metals markets
- Real-time scrolling news service with instant analysis
- Daily and weekly pre-market research and calendars
- Video updates covering near-term key risk events & primary trading themes
- One-to-one chat with our expert analysts