Analyst: Powell's Forward Guidance May Be Limited, Future Actions Should Be Monitored

April 30th — Markets widely expect the Federal Reserve to hold interest rates steady at its meeting today, shifting focus to Fed Chair Jerome Powell’s next step: will he stay on or depart the central bank as his term ends on May 15th? Some analysts note that, regardless of Powell’s personal intentions, his forward policy guidance at what’s likely his final press conference as chair will be limited — given Kevin Warsh is favored to be confirmed as his successor. They add Powell is expected to take a reflective tone about his tenure: he leaves behind a strong economy, but inflation remains well short of the Fed’s 2% target. With U.S.-Iran peace talks stalled and a long-term blockade of the Strait of Hormuz now looking like the new normal, the FOMC’s commitment to holding rates unchanged has only grown stronger. (FXStreet)