Federal Reserve System

Markets look for confirmation of Fed's policy easing

Federal Reserve Board Chairman Jerome Powell walks up to speak during a news conference. Photo: Mark Wilson/Getty Images
Federal Reserve Board Chairman Jerome Powell walks up to speak during a news conference. Photo: Mark Wilson/Getty Images

The market has stopped paying much attention to Fed Chair Jerome Powell's long-range forecasts and the Fed's future guidance and will merely be looking for confirmation of its expectations at this week's Fed meeting.

The state of play: Markets are now looking to data — including the value of the stock market — rather than central bank predictions as the road map for policy.

S&P expects the Fed will be forced to cut interest rates in 2019

In this image, Powell stands and speaks while gesturing with his palm facing out.
Federal Reserve Board Chairman Jerome Powell at a news conference on May 1, 2019. Photo: Mark Wilson/Getty Images

Ratings agency S&P Global is now joining the market chorus — it expects at least one interest rate cut from the Fed this year, citing "increasing headwinds."

Where it stands: Earlier this year S&P predicted the Fed would hold rates steady through 2019, but said Wednesday it expects the overwhelmingly negative impacts from tariffs to put enough stress on the U.S. economy that the Fed will be forced to act.