An upcoming relaxation?
On Wednesday, markets watched the US employment, ADP and JOLTS data for any signs of further easing, but the good surprise for them came mainly from the chairman of the Fed.
While several FOMC speakers, including some doves, had been sending tougher messages to markets in recent days, maintaining the “threat” of a further 75 basis point rate hike at the December meeting, Jerome Powell, in a very affirming way, has paved the way for a rate hike of 50 basis points, which swept away any doubts on this subject.
Although he reiterated that the Fed should leave interest rates at a “restrictive level” for some time to come, his speech was marked by much more flexible statements than before, showing confidence in the Fed’s ability to achieve a soft landing for the US economy . .