Capital Calls: Powell’s troublesome poker face

Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee hearing on Capitol Hill in Washington, December 1, 2020. Susan Walsh/Pool via REUTERS

Concise insights on global finance.


POKER FACE. U.S. Federal Reserve boss Jerome Powell is keeping his cards close. The central bank on Wednesday maintained the status quo on interest rates and $120 billion in monthly asset purchases, as expected. He was more optimistic about the economic outlook, but Powell refused to hint at his tapering timeline. He needs to stop playing poker.

Americans are feeling good about the economy again. The Conference Board’s consumer confidence index in April was at its highest level since February 2020. Meanwhile, the S&P CoreLogic Case-Shiller house price index jump 12% in February, the fastest pace since February 2006.

Still, Powell said on Wednesday that it’s not time to talk about tapering bond purchases. That’s meant to happen when the Fed reaches its twin goals of long-run 2% inflation and so-called full employment, the latter being a somewhat nebulous goal read more .

If the economy continues to improve, the Fed may quickly start to look overly accommodating . If he gives the market time to prepare, the transition to tapering could potentially be done without the market blindly going all-in. (By Gina Chon)

On Twitter

Earlier in Capital Calls:

Shopify accelerates to slowdown read more

Mishcon de Reya IPO needs polished investor brief read more

Boeing’s long haul read more

Santander’s Brazil gloom looks overdone read more

Sony caution jars with market mood read more

Reuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.

Source link

Contact US

For Business Related Queries:

For Customer Support:

Sign Up to receive latest poker /casino news, coupons!
Find your favourite online casino and online poker coupons and deals!
Copyright © 2021 GuciPoker | All rights reserved | All logos and trademarks belong to their respective companies