Fed Chairman Powell May Give A Hawkish Message

Fed Chairman Jerome Powell, who will speak at the event for the last time before the Fed's May 3-4 meeting, may give a hawkish message.

Jerome Powell will speak at the event for the last time before the Fed's May 3-4 meeting. In his speech here, Powell may signal that there will be a higher than expected rate hike in May. Powell will speak at a panel organized by the IMF, which will be attended by European Central Bank President Christine Lagarde and other policy makers. In his previous speech, Powell had given the message that a 50 basis point rate hike at the next meeting was possible. Due to the fact that inflation is at the highest level in 40 years, the rumors among Fed officials that there may be a faster interest rate increase have increased. The minutes of the Fed's March meeting showed that most members favored a 50bps increase, but opted for a 25-point 'cautious' cut due to Ukraine uncertainty. Bloomberg economists Anna Wong, Eliza Winger and Andrew Husby reported that the Fed will raise interest rates at every meeting this year, expecting a 50 basis point increase in May alone.