Investors detect dovish undertones to Powell’s campaign against inflation

Financial Times/Colby Smith/5-4-2022

graphic image of a gun with a bang sign

“As Jay Powell tries to reframe how the Federal Reserve will tackle the highest inflation in roughly 40 years, one of his most challenging tasks has been convincing investors of the US central bank’s commitment to doing so.”

USAGOLD note: As we pointed out in yesterday’s Daily Market Report, Powell came off as dovish on two fronts. First, he took any future .75% rate hikes off the table for now. Second, he unexpectedly admitted that the Fed is limited as to what it can do about supply-driven inflation. The first confirmed long-standing suspicions of an overall dovish tilt within the FOMC. The second brought front and center long-standing concerns about the Fed’s ability to contain the inflation rate.


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