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The president has already expressed his skepticism about programs such as quantitative easing, which has pushed the Fed's balance sheet to more than $ 4.5 trillion. And he spoke of the importance of giving the central bank enough ammunition to fight the next crisis, which low interest rates would make more difficult.
AB Bernstein's strategist Noah Weisberger said Powell's current statement was probably "out of the money", meaning it has not been reached yet and the next one has a "strike price" "or a point where the impulse to act kick in, is even lower.
This means that a "more serious anxiety crisis" may be needed "to reactivate it next time," said Weisberger, general manager of the firm's US portfolio strategy.
However, the market thinks that at least the Fed is not going to increase its rates anytime soon.
According to the CEM tracker, the pricing of futures contracts does not predict a rate hike by January 2010 at least. In fact, traders advertise about 31% chance of a reduction at the first meeting of the Federal Open Market Committee next year, the actual reduction being between the middle and the end of the year. year when the implicit financing rate is 2.17%.
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