Analyst: Powell Adopts a "Two-Faced" Strategy, Talking Hawkish to Appease the Rate Hikers, While Dragging His Feet in Action

BlockBeats News, July 2nd, institutional analyst Andrew Sacher stated that after Fed Chair Powell made his debut at the June FOMC meeting, the market is still debating his stance—is he a hawk or a dove? Due to internal FOMC disagreements on whether the next step is to raise interest rates or keep them unchanged, Powell's position is particularly important. The Sintra conference will provide a new opportunity to reassess his stance.

Sacher believes that Powell is first and foremost a politician, and his remarks at the FOMC meeting are balanced for both sides—we expect a similar strategy to be taken at Sintra. As he focuses on price stability, his comments may lean hawkish, aiming to appease a significant portion of the committee who want the Fed to demonstrate its independence from Trump by raising interest rates.

Powell's actions so far—such as setting up five working groups to review key Fed issues—have bought time for the next steps.