Chair Powell Is Not Leaving And Other Observations

Michael Gray2.77K FollowersFollow5ShareSavePlay(16min)CommentsSummaryThe Federal Reserve held rates steady at 3.50%-3.75%, maintaining a cautious stance amid Middle East-driven uncertainty and elevated inflation.Chair Powell signaled he will remain on the Board of Governors until DOJ investigations conclude, effectively blocking presidential control of the Fed.The Fed's dot plot projects only one 25 bps rate cut this year, but confidence in projections is low given persistent inflation and labor market ambiguity.Bond markets are tightening independently, with yields surging in response to geopolitical risks and global central banks bracing for potential rate hikes. Anna Moneymaker/Getty Images News FOMC Policy Decision As expected, the Fed left the Fed Funds Rate unchanged at 3.50%-3.75%. This is the second consecutive FOMC meeting with a rate pause. The vote was 11-1, with one member wanting a 25 basis point rateThis article was written byMichael Gray2.77K FollowersFollowMichael Gray has devoted his career to following the capital markets and managing fixed income assets. He founded Gray Capital Management LLC and before that was Head of Taxable Fixed Income at Fidelity Investments. Michael has an MBA in Finance from Wharton and a BA in Economics from Union College.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.