Powell paves way for possible dovish shift in inflation strategy

Bloomberg/Rich Miller, Christopher Condon and Matthew Boesler/1-30-2020

Artist rendering of two doves, Asian motif“Federal Reserve Chairman Jerome Powell signaled that the central bank would pull out the stops to combat a global disinflationary downdraft, foreshadowing a potential shift toward an easier monetary policy over time.”

USAGOLD note:  Chairman Powell’s rather forceful statement that the Fed is “determined” to avoid a disinflationary outcome in the United States is a clear statement of the central bank’s intentions.  The question hanging over the markets is whether or not its policies will deliver the intended result.  At the same time, it seems the Fed is not only reluctant to back down from the dovish course of action already in place, but it could also be intent, as Bloomberg suggests, in upping the ante.

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