The Globe and Mail reports in its Thursday edition that
Jay Powell just out-Polozed Stephen Poloz. The Globe's David Parkinson writes that the head of the United States Federal Reserve did not come out with a string of colourful metaphors that would put his counterpart at the Bank of Canada to shame. However, in delivering a policy decision on Wednesday that held interest rates steady while walking back expectations for further increases, Mr. Powell borrowed more than a few pages from Mr. Poloz's playbook, as well as a willingness to surprise the markets.
The Fed followed the BOC in signalling that it, too, sees fit to take a (and perhaps prolonged) break from the rate-hike stairmaster. Mr. Powell has been preaching "patience" on future rate increases for weeks now, so the Fed's decision to incorporate the word into the text of its rate announcement was entirely predictable.
However, where Mr. Poloz earlier this month made it clear that he still expected to resume hikes at some point, Mr. Powell provided no such assurances. The Fed purged from its statement its repeated assertion that "further gradual increases" in its key interest rate would be appropriate to keep the economy on a sustainable growth path.
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