“Fed Chair Powell moved more decidedly in a hawkish direction,” Quincy Krosby, Chief Global Strategist for LPL Financial, said.
US stocks were mixed on Tuesday, with equities wavering after the latest comments from Federal Reserve Chairman Jerome Powell cast doubt on the potential for interest rate cuts this year.
Speaking during a panel, the central bank chief said that more confidence was needed in the trajectory of US inflation, which has remained stubbornly high in recent readings.
“More recent data shows solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2% inflation goal,” he said.
His comments sent long-dated Treasury yields spiking to another 2024 record, indicating that investors are growing convinced about a higher-for-longer monetary regime.
Fed fund futures are now pricing in the first rate cut for September, instead of the long-touted June timeline.
