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Jerome Powell’s Fed Wants the Bond Market to Hear Three Messages

  • Fed chair makes clear FOMC will only react to actual data
  • Projections, seen as ‘uncertain,’ aren’t pledge FOMC will act
Bloomberg business news
WATCH: Federal Reserve Chairman Jerome Powell speaks at a news conference about the decision to keep near-zero interest rates at least through 2023.(Source: Bloomberg)

Jerome Powell has a goal that is bigger than the bond market’s near term inflation concern.

In perhaps his most forthright press conference since taking the helm of the central bank three years ago, the Federal Reserve chair this week laid out three critical messages for investors who have been propelling bond yields higher on the bet inflation would eventually force his Fed to tighten monetary policy faster than it’s been indicating.