SuRo Capital: Powell Unlikely to Declare Victory Over Inflation, But May Signal Progress

Evelyne Gomez-Liechti, Interest Rate Strategist at SuRo Capital, has stated in a report that Federal Reserve Chair Jerome Powell is unlikely to declare victory over inflation. However, he may imply that the Federal Reserve believes it has made significant progress and can now exercise more patience.

She stated, “Economic growth has not fallen below trend, coupled with a consistently robust labor market, meaning the job isn’t done yet. While inflation appears to be aligning with the Fed‘s recent projections, robust economic growth and low unemployment pose upside risks to the medium-term inflation outlook.”