Credit Market Risk Eases as Powell Quells Future Rate-Hike Fears
- Inflation is still too high, but has moderated, Fed Chair said
- Committee is looking to more data for clarity on cutting rates
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Credit traders took some comfort in Federal Reserve Chair Jerome Powell’s assurances that the central bank isn’t planning to lift interest rates further, sending a gauge for fear of corporate defaults to lower levels.
The Federal Open Market Committee unanimously decided on Wednesday to hold interest rates steady for the sixth consecutive meeting, as anticipated. While a series of higher-than-expected inflation readings spurred traders to dial back wagers of rate cuts later this year, Powell isn’t expecting further rate increases.