Gran Exchange May 2 | Dansk Bank said that the Fed kept interest rates unchanged, in line with expectations. Powell did not provide the relevant policy prospects.Hardystgeorge3But stressed that the Fed continues to believe that its policies have a restrictive effect on demand. Dansk Bank believes that the Fed rate cut is coming sooner than the market expected.

Powell made it clear that the Fed's current policy is still in good shape. Despite the crackdown on the first quarter dataHardystgeorge3Confidence in the economic outlook has been boosted, but a further fall in inflation is still possible as tight price pressures in the labour and housing markets continue to ease. He does not see the recent inflation figures as a sign that demand growth is accelerating again.

In addition, although Powell was repeatedly asked about the possibility of raising interest rates again, he completely avoided such speculation. All in all, Dansk has been calling for the Fed to cut interest rates three times by 25 basis points in 2024, starting in June. However, while Mr Powell's comments today did not make them lose confidence in his view, the bank is now evaluating it based on recent data and will discuss possible revisions after the non-farm data are released in April.