Powell Touts Tight Financial Conditions, Causing Them to Loosen
- Financial climate had turned more restrictive in recent months
- Talking in ‘supportive’ way loosens conditions: Bill Dudley
Jerome Powell
Photographer: Al Drago/BloombergThis article is for subscribers only.
For a lesson in the real-time pitfalls of Federal Reserve messaging, consider the market reaction to Jerome Powell’s commentary on the role of Wall Street in subduing inflation.
Stocks and Treasuries rose after the central bank held interest rates steady and the Fed chair name-checked rising bond yields in helping to tighten financial conditions — potentially serving as a substitute for additional interest-rate hikes down the road.