FOMC: Powell sounded more dovish at the post-meeting press conference – OCBC


The Committee decided to maintain the target range for the Fed funds rate at 4.25-4.50% at the January meeting; the decision was unanimous, OCBC's FX Frances Cheung and Christopher Wong analysts note.

Current monetary policy is 'meaningfully above the neutral rate'

"The Statement was seen as carrying a hawkish tilt on two fronts: 1/It dropped the reference that 'inflation has made progress towards the Committee’s 2 percent objective'; and 2/ it also dropped the assessment that 'the labor market conditions have generally eased'. Powell sounded more dovish at the post-meeting press conference, saying the economy is strong overall, and 'has made significant progress towards our goals over the past two years'."

"Indeed, the progress has been there for a long time, and we do not read too much into the shortening of that phrase in the statement, which was 'a little language cleanup' as how Powell described it. That said, stabilization in the labor market conditions reduces the urgency to ease policy rapidly. Powell opined 'we do not need to be in a hurry to adjust our policy stances', but 'reducing policy constraint too slowly or too little could unduly weaken economic activity and employment'."

"On balance, the case for a March cut is not close yet, in our view. First, Powell said the current monetary policy stance is 'meaningfully above the neutral rate'; second, the favorable base effect for CPI may result in some downside surprises for Q1 readings."

Share: Feed news

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. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD stays vulnerable toward 0.6200 ahead of US PCE data

AUD/USD stays vulnerable toward 0.6200 ahead of US PCE data

AUD/USD sits at monthly lows, eyeing 0.6200 early Friday. Traders remain risk averse amid US tariff threats, underpinning the safe-haven US Dollar and dragging the pair lower.  All eyes now remain on the US PCE inflation data for fresh trading impulse. 

AUD/USD News
USD/JPY holds sizeable losses near 149.50 amid risk aversion

USD/JPY holds sizeable losses near 149.50 amid risk aversion

USD/JPY remains under intense selling pressure to trades near 149.50 in Friday's Asian trading. Despite dismal Tokyo CPI and Japan's Retail Trade data, the Japanese Yen stands resilient due to risk aversion. The US Treasury bond yields sell-off weighs heavily on the pair ahead of US PCE data. 

USD/JPY News
Gold breaches key $2,890 support ahead of US PCE inflation data

Gold breaches key $2,890 support ahead of US PCE inflation data

Gold price struggles near two-week lows below $2,900 in Friday’s Asian trading hours, looking to snap its eight consecutive weekly gains. Traders weigh the latest tariff threats from US President Donald Trump and the sharp decline in the American artificial intelligence leader Nvidia's share price.

Gold News
Ripple's XRP sees further decline as short-term holders take profits, whales buy the dip

Ripple's XRP sees further decline as short-term holders take profits, whales buy the dip

Ripple's XRP is down 4% on Thursday as it struggles near the support at $2.12. Whales have been accumulating the recent selling pressure from short-term holders following the recent crypto market crash.

Read more
February inflation: Sharp drop expected in France, stability in the rest of the Eurozone

February inflation: Sharp drop expected in France, stability in the rest of the Eurozone

Inflation has probably eased in February, particularly in France due to the marked cut in the regulated electricity price. However, this overall movement masks divergent trends. Although disinflation is becoming more widespread, prices continue to rise rapidly in services, in France as well as elsewhere in the Eurozone.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025