Major Institutions Anticipate Powell Press Conference: Market Cautious of Hawkish Risks, Emphasizing "Wait-and-See Attitude"

BlockBeats News, April 30th, several institutions released their outlook on Federal Reserve Chairman Powell's press conference. Most institutions believe that, facing improvements in employment and inflationary pressures, the Federal Reserve will maintain a cautious stance in the short term, with an overall tone of a hawkish risk.

Citi and JPMorgan believe that Powell may acknowledge the improvement in the labor market while emphasizing the resilience of PCE inflation. Energy prices and the situation in Iran continue to pose upside risks, thus leaning towards maintaining a "wait-and-see" policy stance.

BNP Paribas pointed out that with inflation risks still unresolved, Powell is unlikely to proactively pave the way for rate cuts before his successor takes office; MUFG Bank stated that if this FOMC statement does not strengthen the language on inflation risks, Powell may signal a more hawkish tone at the press conference.

Wells Fargo expects Powell to focus on the high uncertainty brought about by the Iran conflict and its impact on the Fed's dual mandate, emphasizing that the current policy framework helps to continue monitoring economic data.

In addition, Danske Bank is concerned about whether Powell will reveal whether he will continue to serve as a Fed governor after stepping down as chair; ING Bank, on the other hand, believes that Powell will most likely continue his consistent and prudent style, avoiding commenting on the future policy direction to ensure market stability during the transition of power.