Fed Chair Powell reiterates that a strong majority of Fed policymakers see two or more rate rises by the end of this year

Inflation:

• Core PCE likely rose 4.7% Y/Y in May, overall PCE estimated to have risen 3.9% (note: Data released on Friday)


• Repeats that inflation is above target.


• Process of getting inflation to target stil has a long way to go.

Labour market:

• Repeats that the labour market is tight.

Real Estate:

• Some housing market indicators have turned up.


• Housing sector still far below peak.

Financial Sector/Credit:

• Bank stresses that emerge in March may lead to further tightening of credit conditions.


• Economy faces headwinds from higher credit conditions


• Must not take financial system stability for granted


• Banking system strains have eased, deposites have stabilised.

Policy Outlook:

• Will take time of full effects of monpol to be realised.

Analysis details (07:38)

• Perhaps the most interesting features within these remarks are the expectations for May PCE data, due Friday 30th June; Powell said Core PCE likely rose 4.7% Y/Y in May (which would be in line with the current consensus), overall PCE estimated to have risen 3.9% Y/Y (current consensus looks for 4.6%)

29 Jun 2023 - 07:31- Fixed IncomeImportant- Source: Newswires