‘Powell’s hawkish lean a response to loose financial conditions’

Federal Reserve Board Chairman Jerome Powell during a press conference following a closed two-day meeting of the Federal Open Market Committee on interest rate policy at the Federal Reserve in Washington, U.S., November 1, 2023. REUTERS/Kevin Lamarque

NEW YORK: A hawkish lean from Federal Reserve (Fed) chair Jerome Powell chilled a recent rebound in stocks and bonds, with some investors suggesting the central bank was pushing back against loosening financial conditions.

Speaking at an International Monetary Fund conference recently, Powell said the Fed would “not hesitate” to tighten monetary policy if needed and that the fight to restore price stability “had a long way to go.”