USDCHF: The Fed Chairman said he would proceed carefully and did

Chairman Jerome Powell said the Fed wants to keep interest rates unchanged at its next meeting, while leaving open the possibility of raising interest rates again in the future if policymakers see more signs of a resilient economy. .
These comments confirm market expectations that the Fed will not raise interest rates at its October 31-November 1 meeting. He also said the recent rise in long-dated bond yields, if continued, could replace a “little bit” of interest rate increases, echoing his peers and emphasizing the importance of tightening regulations. financial conditions on the interest rate outlook in the coming months.

“Given the uncertainties and risks and how far we've come, the committee is proceeding carefully,” Mr. Powell said at the Economic Club of New York. “We will make decisions on the level of further policy consolidation and how long it will remain restrictive based on the total data, outlook and balance of risks.”

The 2-year bond yield fell after Chairman Powell spoke, while the 10-year bond yield retreated from its upward momentum. The USD fell and S&P 500 stocks, after much volatility, also fell.