FUNDAMENTAL ANALYSIS by Rahul Khanna


FX


Jerome Powell The New Sisyphus at Fed


The


Federal guard


Reserve


Powell’s first meeting off


with


delivered a more


the widely


anticipated


as Chair. The new Fed Chair pragmatic


approach than


hike


caught his


at


Jerome


the market predecessor.


In March, the new Fed Chairman Jerome Powell took the reins from his predecessor Janet Yellen and delivered a rate hike at the first meeting as Chair. The market was buoyant going into the meeting but was disappointed due to no changes made to the 2018 median dot plot


and a slightly dovish/gradualist stance taken by the Fed chair. The key takeaways were: inflation is not accelerating; dot plot significance is reduced; a symmetrical approach is needed to inflation targeting.


following the FOMC meeting with S&P500 and US yields falling sharply (as seen in figure 1 and 2). Jerome Powell pragmatic approach (less academic compared to Yellen) caught market off guard. He highlighted that


the Global equities and yields corrected median dot plot is an individual FX TRADER MAGAZINE April - June 2018 15


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