Fed: All Eyes on Chair Powell – Nomura

Fed Chair Powell is scheduled to make his first public comments since becoming chair at 10:00AM EST on Tuesday (27 February) when he testifies in the House and his prepared remarks will be released at 8:30AM, points out the research team at Nomura.

Key Quotes

“He will also appear before the Senate Banking Committee on Thursday. We expect Powell to signal policy continuity in the near term and acknowledge the near-term growth effects of fiscal policy and the longer-term deficit and debt implications. He will also likely be asked about recent changes in financial conditions and the risks they pose to the outlook.”

“Markets will not only be looking for his answers to these questions, but also his style of communication. Not coming from a monetary policy background, Powell may frame his arguments in a new way, which may generate surprises. That said, we do not expect him to intentionally signal a change in policy direction, including an acceleration in the pace of rate hikes, during his testimony.”