Fed Chair Powell will also ask for 'patience'

Fed Chair Jerome Powell is expected to reiterate his message of patience on rate cuts in his mid-year presentation this week. Following the release of core PCE data last week in the U.S. that indicated continued price pressures, Fed Chair Jerome Powell is expected to reiterate his message that there will be no rush to cut rates in his mid-year presentation this week. Powell is due to address the U.S. House of Representatives Financial Services Committee on Wednesday and the U.S. Senate Banking Committee on Thursday. Chair Powell and other Fed officials who have spoken recently have been giving verbal guidance that there will be patience in easing monetary policy. Powell is expected to take a hawkish stance, according to Anna Wong, Stuart Paul, Eliza Winger and Estelle Ou of Bloomberg Economics. “If the Fed’s lack of haste in rate cuts leads to tighter financial conditions, this will continue to put pressure on the economy and increase the likelihood of additional lagging effects from monetary policy,” the economists wrote in a note.