In the face of an unfathomable pressure from the US lawmakers and an immense outcry in the global stocks, alongside Wall Street, amid rising corporate debts to three-year high, Federal Reserve Chair Jerome Powell had introduced a “new” & “patient” approach to their monetary policy, halting a three-year long vivacious cycle of hawkish rate hike.
Nonetheless, while pledging to be patient last month and halting interest rate hike, Fed did not give any specific guidance on how long their “patient” policy could last. After this week had experienced a landslide fall in the US retail sales to a nine-year-low and tottered US manufacturing figure largely led by the auto sector, alongside a basket of unnerving corporate earnings figures, three Fed policymakers had been quoted saying later on Friday, the 15th of February, that, depending on the market condition and geo-political factors, there might have been one rate hike this year.
On the flipside, if the financial condition deteriorates, there may not be any rate hike at all. It has not yet revealed how widely these perspectives are shared among all 17 Fed policymakers and several other policymakers remained cautious this week while expressing their opinions, as Fed comments had been one of the major driving forces for Wall Street since Fed Chair, Jerome Powell took the office in last year.
However, the first reading of the views might have been unveiled as early as in March, when the Federal Reserve is due to release their forecasts for US economy and interest rates.