Wall Street Breakfast Fed's Powell worried about too little and too late
Jul 9, 2024
Fed chief Powell expresses concerns about inflation risks. Mounjaro outperforms Ozempic in a study. Warren Buffett's indicator signals a record high. KeyBanc raises targets for Nvidia and Micron after chip checks.
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Powell Flags Dual Risks For Policy
- Jay Powell said the Fed is making rate decisions meeting by meeting and needs more data to confirm inflation's path.
- He warned that reducing policy restraint too late or too little could unduly weaken activity and employment.
Markets Parse Powell As Hawkish
- Markets reacted mixedly with bonds focusing on hawkish comments and the 10-year yield rising above 4.3%.
- Odds of a September quarter-point cut remained about 70% despite Powell's cautious tone.
Possible Easing Of GSIB Surcharge
- The Fed may alter how it calculates the GSIB surcharge, easing capital requirements for the eight largest U.S. banks.
- Reuters says the change would save banks billions by reducing the extra capital layer introduced after 2008.