Fed Chair Powell speaks on Thursday 4 March 2021
- at 17.05 GMT
- at a Wall Street Journal event
- he will be discussing the US economy
- he will not speak from a prepared text, its a Q&A session
Preview of the event via Standard Chartered analysts, they expect Powell to say that there is scope for a policy response by the Fed if rising long-term Treasury yields threaten the economic recovery
- expects Powell's speech to support calmer price action
- market is likely to conclude that 1.50-1.60% for the 10-year yield is the top of the Fed's comfort zone for the near term
- If Powell only repeats the Fed's current forward guidance and its view that near-term inflation will be transitory then this risks the market pushing yields higher
The analysts add that Powell is unlikely to mention options such as extending the duration of Treasury purchases or an Operation Twist. However, they say, these are likely paths the Fed would take if action were needed.
