Bloomberg Surveillance Instant Reaction: Jay Powell on the Fed Decision
10 snips
Mar 18, 2026 Mike McKee, a Fed reporter with legal and procedural insight, Jeff Rosenberg, BlackRock portfolio strategist, and Torsten Sløk, Apollo chief economist, react to Jay Powell’s press conference. They discuss market moves after the rate decision. They unpack Powell’s comments on tenure and succession. They examine inflation risks from tariffs and Middle East energy shocks and how markets are repricing rate-cut expectations.
AI Snips
Chapters
Transcript
Episode notes
Powell Commits To Staying Through Confirmation
- Powell said he'd remain chair pro tem until a successor is confirmed and won't leave during the DOJ investigation.
- He declined to commit to staying as governor after the investigation, creating succession uncertainty.
Succession Talk Reprices Fed Futures
- Markets interpreted Powell staying on and Middle East shocks as making a Kevin Warsh Fed relatively more dovish by comparison.
- Fed funds futures pushed cuts out, pricing no full cut until mid-next year.
Powell Refuses To Label The Shock Transitory
- Powell repeatedly said 'too soon' to judge the Middle East shock, avoiding calling it transitory and stressing humility.
- He mentioned goods inflation from tariffs and said progress on inflation is required before cuts.