Fed members push back against bets that hiking cycle is done; Powell eyed
Investing.com — Federal Reserve members on Tuesday downplayed expectations that era of rate hikes has ended, setting the stage for Fed chairman Jerome Powell to potentially deliver a hawkish push back against the recent easing in financial conditions.
Federal Reserve Governor Michelle Bowman was among a slew of Fed members on Tuesday to remind market participants that bets on the Fed not lifting rates again were premature.
«I remain willing to support raising the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or is insufficient to bring inflation to 2% in a timely way,» Bowman said Tuesday.
Federal Reserve Bank of Chicago President Austan Goolsbee, meanwhile, acknowledged the recent progress on inflation, but said in an interview with CNBC on Tuesday that getting inflation down was" the No. 1 thing."
The slew of remarks revived some investor attention on the prospect of a further rate hike, but with many still holding onto bets that the Fed hiking cycle is over, Treasury yields struggled to shake off their blues following the Fed's decision to keep rates unchanged last week as well as Powell's dovish press conference on Nov.1.
«Powell was dovish – downplaying recent strong U.S. data. This suggests that the bar for further hikes is quite high – and thus it is likely the end of the rate hikes, in our view,» Nomura said in a note, ahead of remarks from the Fed chairman on Wednesday and Thursday.
The prospect of rate hike at the December and January meetings are slum at 10% and 15% respectively, according to Investing.com's Fed Rate Monitor Tool.
The overarching message from Fed speakers on whether higher Treasury yields will help them in their mission to
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