will share his thoughts on the economy and labor market at the Brookings Institute today. Economists at DBS Bank expect Powell to realign markets to the Fed’s rates trajectory.“Powell will stress that rates will only pause in 2023 and remind markets that the Fed has yet to start an internal debate on where and when rates will peak. Powell should reaffirm the Fed’s intention to lift the 2023 target for rates from the 4.6% pencilled in September in next month’s Summary of Economic Projections.
“If Powell realigns the market to the Fed’s rate trajectory, the UST 10Y yield should rise above 4% again and pull the USD higher.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions.
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