Powell refutes December rate cut expectations, Fed hints at more flexible policy

[BitPush] “Fed's megaphone” Nick Timiraos comments on Fed Chair Powell's speech, stating: “Powell's press conference indicated that the FOMC overall does not agree with the market's previous high pricing for a rate cut in December.” Powell noted: “There are significant differences in our views on how to act in December.” He emphasized that a rate cut in December “should not be seen as a foregone conclusion. In fact, far from it.” This has gone beyond their usual disclaimer that “policy does not move along a preset path,” which is clearly an effort to reclaim some degree of policy flexibility to avoid being forced into a specific action. What if there is no government data to help clarify the economic situation? Powell pointed out that this implies a “very high degree of uncertainty, which could be a reason for cautious action.”