In an interview in the Wall Street Journal, Federal Reserve Chairman Jerome Powell he said Tuesday that US central bank officials will keep tightening policy until inflation comes down “convincingly.”
“There have been some promising signs to point to,” Powell told a Wall Street Journal conference. But, he added, “there are some signs that are not so promising.”
Risk assets came under pressure during the event and the US dollar was thrown into a shorter bullish environment on the charts by hawkish rhetoric from the Fed chairman who said there is a dire need to get inflation under control.
His aggressive rhetoric pushed the S&P 500 back toward daily lows, but the index has since clawed back to a daily high as markets digest the chairman’s comments signaling that the Fed will slow the pace of rate hikes depending how conditions evolve. These decisions will be made meeting by meeting.
The US dollar has also retreated after the interview:
Source: Fx Street