#PowellRemarks Key Points from Powell's Latest Comments:
- Maintained stance that current policy is restrictive but needs more time to work
- Reiterated data-dependent approach for future rate decisions
- Noted "modest further progress" on inflation but wants more confidence before cutting
- Labor market remains strong but cooling gradually
Market Impact:
- Rate cut expectations pushed back (now pricing ~1-2 cuts in 2024 vs 6 expected earlier)
- Treasury yields edged higher (10-year at 4.25-4.35% range)
- Dollar index (DXY) strengthened slightly
- Stocks muted reaction - S&P 500 flat after remarks
What's Next:
- Next key data points: June CPI (July 11) and PPI (July 12)
- Next FOMC meeting July 30-31
- Markets now see September as earliest possible cut window