JPMorgan is not fully on board with Powell's message re more to be done on inflation

<p>JPMorgan were perhaps a little unking to Federal Reserve Chair Powell after this comments on Thursday, saying the remarks were those of a two-handed economist. Paraphrasing:</p><ul><li>there is progress on inflation BUT there is still a “long way to go,”</li><li>while labor markets are tight BUT they are moving towards “better balance” </li><li>economic growth is strong BUT expected to moderate</li></ul><p>Yes they are two-handed, like an economist, but none of the above is wide of the mark. </p><p>From a note to clients:</p><ul><li>"The forward-looking implication is that the so-far immaculate disinflation may get a little more painful in the future" </li><li>"We still believe the Fed is done hiking for this cycle, but today’s speech should serve as notice that their rhetoric must stay hawkish until they’ve seen further improvement in inflation."</li></ul><p>—</p><p>JPM continues to expect the rate hike cycle is over. I'd be wary of locking that view down for certain given the view of the big guy in charge:</p><ul><li><a href="https://www.forexlive.com/centralbank/powell-we-are-not-confident-that-weve-achieved-sufficiently-restrictive-policy-20231109/" target="_self">Powell: We are not confident that we've achieved sufficiently restrictive policy</a></li><li><a href="https://www.forexlive.com/news/caution-us-dollar-jumps-as-the-market-re-thinks-more-dovish-fed-path-20231109/" target="_self">Caution: US dollar jumps as the market re-thinks more-dovish Fed path</a></li><li><a href="https://www.forexlive.com/centralbank/powell-qa-us-economy-has-been-stronger-than-expected-this-year-20231109/" target="_self">Powell Q&amp;A: US economy has been stronger than expected this year</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.