Economics
Fed Whiplash Leaves Traders Betting Next Policy Move Will Be Cut
- Powell sounds dovish on cross-currents, financial conditions
- Policy makers bend to market on their balance-sheet unwind
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Federal Reserve Chairman Jerome Powell’s first press conference of 2019 left market expectations for an interest-rate hike this year hanging by a thread, and raised the chances of a cut in 2020.
A move to tighten policy in March was already seen as a long shot, but the Fed’s tone on Wednesday cast doubt on the prospects of any rate increase this year, after nine hikes since 2015.