“We can now say for the first time that the disinflationary process has started,” says Fed Chair Jerome Powell after today’s rate hike.
Federal Reserve Chair Jerome Powell then held a news conference, in which he said that the economy's disinflationary process had started. To be sure, Powell added that it's premature to declare victors against inflation.Federal Reserve Chair Jerome Powell made it clear during his press conference that the data the Fed is closely watching more than anything else is jobs data, said former Goldman Sachs chief operating officer Gary Cohn.
"If we do see inflation coming down much more quickly, that will play into our policy setting, of course," Powell said.The central bank is nearing the end of its rate hike campaign and was more dovish this meeting, according to Charlie Ripley, senior investment strategist for Allianz Investment Management.
Powell also said that he still thinks the Fed can get inflation back down to 2% "without a really significant downturn, or a really significant increase in unemployment.""We can now say I think for the first time that the disinflationary process has started. We can see that and we see it really in goods prices so far," Fed Chairman Jerome Powell said at a news conference Wednesday.
Despite the Federal Reserve's aggressive rate hiking campaign, the central bank has more work to do, according to Fed Chair Jerome Powell. However, he said that the Fed doesn't "see disinflation yet" in the core services part of inflation, excluding housing.Market participants shouldn't expect rate cuts later this year from the Federal Reserve, suggested Jose Torres, senior economist at Interactive Brokers.
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