Central Banks
Fed’s Wall Street Clash Sets Stage for Powell’s Hawkish Message
- FOMC is worried that markets may be missing its rate message
- Financial conditions in US have eased the most in 11 months
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Jerome Powell and Wall Street are headed for another face-off this week as the Federal Reserve seeks to slow its inflation-fighting campaign without signaling a readiness to stop.
Despite 2022’s slew of interest-rate hikes from Chair Powell and colleagues, financial conditions are the loosest since last February as investors bet fading inflation will allow the central bank to soon cease raising borrowing costs and then cut them later this year.