Fed's Powell says no need to hike interest rates now — officials should look past higher energy prices

Fed Chair Jerome Powell said policymakers should look past rising energy prices from the war in Iran and that there is no need to hike interest rates now, signaling a dovish near-term stance. The remarks lower the near-term probability of Fed rate hikes, ease upside inflation concerns tied to energy, and should cap further Treasury yield moves while supporting risk assets.

Analysis

Fed Chair Jerome Powell said policymakers should look past rising energy prices from the war in Iran and that there is no need to hike interest rates now, signaling a dovish near-term stance. The remarks lower the near-term probability of Fed rate hikes, ease upside inflation concerns tied to energy, and should cap further Treasury yield moves while supporting risk assets.