Watch Jerome Powell speak after the Fed’s September meeting closes

Jerome Powell told the press conference that the debt problems facing Chinese real estate developer Evergrande should not be seen as a glimpse of what could happen with other companies around the world.

“The Evergrande situation seems very peculiar to China, which has very high debt for an emerging market economy,” said Powell, adding that the company’s distress did not appear to pose a risk to major US banks. or Chinese.

“You’d be concerned that it would affect global financial conditions through trusted channels and that sort of thing, but I wouldn’t parallel the US corporate sector,” Powell said.

-Jesse Pound

Fed Chairman Jerome Powell urged Congress to act quickly to raise the debt ceiling.

“It’s just very important that the debt ceiling be raised in a timely manner so that the United States can pay its bills,” Powell said. “It is a thing of crucial importance.”

The comment comes as Minority Leader Mitch McConnell has said Republicans will vote against raising the debt ceiling. If the debt limit is not suspended, the United States risks defaulting on its debt for the first time in its history.

“Failure to do so is something that could lead to serious backlash, serious damage to the economy in the financial markets and it is just not something that we could be considering – that we should be considering,” Powell said.

“I think we can all agree that the United States should not default on any of its obligations… and that no one should assume that the Fed or anyone else can protect the markets or the economy in the event of a failure. ‘failure, “Powell said.

– Hannah miao

Asked what the upcoming September jobs report means for future hikes, President Powell said he was not looking for specific numbers, but rather “accumulated progress.”

“For me it wouldn’t take a knockout, a great, super strong job report. It would take a reasonably good job report to make me feel like this test is completed. Other committee members, many on the committee feel the test has already been met. Others want to see more progress. “

– Pippa Stevens

Jerome Powell said he was previously “unaware” of details of the business activity of some regional Fed chairmen which have come under scrutiny over the past week.

Powell said the central bank undergo an exam of the ethics policy surrounding trading by Fed officials.

“We’re going to put all the facts together and look for other ways to tighten up our rules and standards,” Powell said.

-Jesse Pound

Equity and bond markets retreated from their earlier levels as Jerome Powell provided more details on the Fed’s outlook. The Dow Jones is now up 380 points, after rising more than 500 points earlier this hour, and the 10-year Treasury yield is now slightly positive on the same day after falling more than 2 basis points more early. Yields move inversely with prices.

-Jesse Pound

Many members of the Federal Reserve believe that employment in the United States has already met central bank standards for “further substantial progress,” Fed Chairman Jerome Powell said at a conference. hurry.

“Many committee members feel that the test for substantial progress in employment has been met… I guess my own view is that the test for further substantial progress in employment is practically met,” said Powell.

– Hannah Miao and Tanaya Macheel

Fed Chairman Jerome Powell at a press conference said members of the central bank expected a cut in the bond buying program in the era of the pandemic ending around the middle of 2022.

“Participants generally consider that as long as the recovery stays on track, a phase-down process that ends around the middle of next year is likely to be appropriate,” said Powell.

– Hannah miao

Powell reiterated his earlier position that the onset and pace of Fed asset purchases “will not be intended to convey a direct signal about when to take off interest rates.” The central bank said the Fed will use a different and stricter test to determine when to raise rates.

-Jesse Pound

Although the Federal Reserve has said that a reduction in its asset purchase program “may soon be warranted,” the central bank’s outlook remains focused on stimulating economic growth rather than controlling the economy. inflation, according to Peter Boockvar, chief investment officer of Bleakley Advisory Group.

“While a cut announcement, perhaps, comes in November, that they didn’t do it today only reflects a committee that is still very accommodating,” Boockvar said after the central bank released. a statement following its September meeting.

– Hannah miao

Half of the members of the Federal Reserve are now planning the first interest rate hike next year, according to the dot plot of projections released following the September meeting of the Federal Open Market Committee.

Nine of the 18 FOMC members expect a rate hike in 2022, according to Wednesday’s projection, down from seven in the June forecast.

All but one of the members expect at least one rate hike by the end of 2023. Thirteen members expect two rate hikes through 2023.

– Hannah miao

President Powell began his opening address.

-Jesse Pound

Even though the Fed signals that a slowdown could be near, the market is still waiting for details, said Seema Shah, chief strategist at Principal Global Investors.

“The Fed’s message is incredibly vague … The market is already anticipating a rate cut and has quickly turned its attention to the date of a possible rate take-off and the pace of rate hikes which, if any. , is a bit more modest than the markets had feared, ”Shah said.

-Jesse Pound

american stocks largely maintained their earnings and the 10-year Treasury yield was lower immediately after the release of the statement from the US Federal Reserve’s Open Market Committee meeting after September.

The Dow Jones Industrial average rose about 450 points and the benchmark 10-year Treasury yield fell about 2 basis points to 1.304% at 2:10 p.m. ET.

– Hannah miao

The Federal Reserve said on Wednesday that it could withdraw its asset purchase program in the era of the pandemic a little earlier than expected by market players.

“If progress continues broadly as planned, the committee believes that moderation in the pace of asset purchases may soon be warranted,” the Federal Open Market Committee statement said after the meeting.

The central bank has kept benchmark interest rates close to zero.

– Hannah miao

The stock market held onto strong gains for the day shortly before 2 p.m., with the Dow Jones higher by more than 300 points and the S&P 500 and Nasdaq Composite up 0.9% and 0.7%, respectively. Meanwhile, the 10-year US Treasury key yield traded slightly for the day at nearly 1.31%. Yields move inversely with prices.

-Jesse Pound

The Federal Reserve’s September comes against an economic backdrop where the history of the recovery in the United States has become more complicated.

In recent months, the US economy has shown signs of weakening growth amid the spread of the delta variant of Covid-19. However, inflation figures remain well above the 2% level the central bank says it wants to average over time, leading some to question whether Jerome Powell’s forecast of a “transitional” rate price increase will be true.

-Jesse Pound

The September Fed meeting was widely expected since the central bank should report that it is about to announce the reduction of its bond buying program. This will be the first big step away from the policies it has put in place to counter the impact of the pandemic on the economy and financial markets. But markets will focus squarely on what the Fed is now forecasting for interest rates and inflation.

-Patti Dom