Analyst: Powell's forward guidance may be limited, with more attention needed on his future moves

Odaily news, With the market widely expecting the Fed to hold interest rates steady at this meeting, analysts say the more noteworthy focus will be on Fed Chair Jerome Powell's future direction: will he stay on or leave the Fed after his term as Chair ends on May 15? The analyst stated, "Regardless of his intentions, we believe that with Kevin Warsh expected to be confirmed as his successor, Powell's forward guidance on policy will be very limited during his final press conference as Chair." He added, "We believe Powell will adopt a more reflective tone when looking back on his tenure — leaving behind a picture of a sound economy, albeit still some distance from inflation returning to the 2% target. With the peace talks between Iran and the US at an impasse and the prolonged closure of the Strait of Hormuz appearing to be the new normal, we believe the FOMC's resolve to hold rates steady has further strengthened." (Golden Ten)