Powell’s Confirmation Hearing: Inflation was on top of agenda – Rabobank

Dhwani Mehta FXStreet

“During Powell’s confirmation hearing before the Senate Banking Committee today, inflation was on top of the agenda and it was clear that Powell abandoned the transitory narrative just in time,” Rabobank’s Research Analysts said.

Additional quotes

“Powell wants to prevent higher inflation from becoming entrenched, which means that the Fed is in a hurry to start raising rates and to start reducing the balance sheet.”

“However, questions remain how ‘hawkish’ the Fed will remain if inflation – in line with the Fed’s projections – comes down later this year.”

Read: US Inflation Preview: Dizzying heights of 7% would cement a March hike, supercharge the dollar

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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