Fed's Powell: Well positioned to wait for greater clarity before making changes to stance ...Middle East

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Feds Powell: Well positioned to wait for greater clarity before making changes to stance
Growth likely slowed in Q1Economy solid despite heightened uncertainty and downside risksInflation is a bit above 2% goal, has come down a great dealSo far larger than expected tariffs likely mean higher inflation and slower growthSharp decline in business, household sentiment and elevated uncertainty reflect trade policy concernsLabor market solid, broadly in balance, not contributing to inflationPCE prices likely rose 2.3% in the 12 months through MarchAdmin policies still evolving, effects remain uncertainWe may find both sides of mandate challenged, if so, we would consider how far economy is from each goal and potential time horizons for those gaps to close

These comments don't sound like anything different from the Fed press conference. The initial reaction is stock market selling as many were hoping for a dovish shift like Waller.

I think that final line about gaps closing could be viewed dovishly as inflation shocks are likely to be more of a one-off while economic weakness tends to snowball.

    FX moves have been minimal.

    This article was written by Adam Button at www.forexlive.com.

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