Powell Focuses on Resolving Market Doubts Over Financial Policy-Bloomberg

Federal Reserve Chairman Powell reiterated his stance of being extremely patient as a financial authority in reducing economic support measures after the end of the coronavirus disease, and financial markets suddenly became skeptical. He is expected to try to persuade him.

Fed Watcher is determined to meet last year’s revised inflation and employment targets by maintaining ultra-lax monetary policy for long periods of time, rather than trying to stop rising long-term interest rates. We reaffirm and hope to clarify our intention to avoid a revival of the disorderly bond market like last week.

President Powell will speak at an online seminar hosted by The Wall Street Journal (WSJ).

“It’s not about talking to the market to encourage falling interest rates, but wanting interest rate trends that are in line with the Federal Reserve’s targets,” said Michael Ferroli, chief economist for the United States by JPMorgan Chase …

This is also important for the long-term health of the American economy. If the market and financial authorities are in a coordinated relationship, they will work together to achieve the authorities’ goals of maximum employment and an average inflation rate of 2% over a period of time under the new monetary policy framework.

Fed Director Brainard, who spoke at a virtual event organized by the Council on Foreign Relations (CFR) on the 2nd, said: “There is still a lot to do and patience is appropriate,” and is far from achieving the goals from the financial authorities. Emphasize that. President Powell may have a similar opinion.