News

BlockBeats News, June 18th, Federal Reserve Chair Powell stated, "We have now abandoned forward guidance and cannot provide any forward guidance on the next steps. The dot plot is done in pencil and it can be erased. A comprehensive review of communication practices, including press conferences, dot plots, and meeting schedules, is expected to be conducted by the end of the year." (FXStreet)

BlockBeats News, June 18th, Federal Reserve Chair Powell stated that the goal is to correctly implement monetary policy amid inflation well above the 2% target. Recent history should not be a prelude to an inflation problem, and no updated Summary of Economic Projections was provided today. He agreed that forward guidance may not be well-suited for the current situation. (Kryptonite)

Golden Ten Data, June 18—Kay Haigh, an analyst at Goldman Sachs Asset Management, stated that today’s rate decision confirms the Federal Reserve’s recent hawkish shift is not solely tied to rising energy prices. Although oil prices have recently declined, half of the FOMC members expect a rate hike as early as this year, reflecting a robust labor market and inflation data. Our baseline assessment remains that the Federal Reserve can just about avoid raising rates, but the path is narrow and future inflation data will carry significant weight.