Caution Prevails as Fed Officials Make Hawkish Noises
Risk appetite is fading ahead of the North American open as traders brace for a more hawkish turn from Jerome Powell during tomorrow’s semi-annual Congressional testimony. Officials seem to be growing uncomfortable with the recent easing in financial conditions. Federal Reserve Bank of Atlanta President Raphael Bostic last night suggested that the central bank’s first rate cut was likely to land in the third quarter, with a pause followed by moves spaced out over time. “Given the uncertainty,” he said, “I think there is some appeal to acting and then seeing how participants in the markets, business leaders, and families...