By Howard Schneider
JACKSON HOLE, Wyoming (Reuters) – Inflation has been falling. The unemployment rate is a low 3.5%. The U.S. economy has avoided a threatened banking crisis and financial markets have not only aligned with the Federal Reserve’s tight-credit policies but of late even helped the process by bidding up market interest rates.
When Federal Reserve Chair Jerome Powell delivers a keynote speech at a central bank research symposium hosted by the Kansas City Fed here on Friday, that copacetic backdrop may inspire a message shaped mostly to avoid trouble.
With no clear crisis to address and no public expectations that need reshaping, why risk spoiling the party?
“If he had one sticky note on the palm of his hand I think it would be ‘don’t rock the boat,’ in the sense of not to come across as too dovish or too hawkish,” said Antulio Bomfim, until last year a senior Fed policy adviser and now head of global macro for the global fixed income team at Northern Trust. “Market pricing…
2023-08-25 00:06:59
Original from finance.yahoo.com
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