BlockBeats News, February 2nd, JPMorgan Chase's Chief U.S. Economist Michael Feroli predicted in a report that Powell may be inclined to cut interest rates in the short term, at least for this year. However, he also warned: "As time goes on, especially as we get past the midterm election and the government enters a lame-duck period, his stance is likely to shift, even back to a more hawkish nature."
It is worth noting that JPMorgan Chase did not adjust its interest rate cut expectations due to Powell's nomination. Feroli stated that even if Powell takes office, the bank still expects the Fed to "stay put" for the rest of the year.
Interestingly, a former Fed official who worked with Powell also believes that the "real Powell" will eventually emerge. This anonymous official told CNN: "Powell has coveted this position for too long. He is a smooth operator, extremely adept at climbing the ladder. But this position is his lifelong pursuit. If he merely becomes a yes-man just to rise to the top, it would be a Pyrrhic victory. The longer he stays in this position, the more likely he is to show his independence."
