Deutsche Bank: The Federal Reserve may hint at a hawkish stance by removing the word "further"

Golden Finance reports that on April 29, Federal Reserve observers do not expect the Fed’s statement to make significant changes, but they note there may be some subtle adjustments. For example, officials might modify their description of the labor market to acknowledge that recent data indicates that, despite fewer hiring activities, the labor market has stabilized. Some officials also hope the Fed clearly states that upcoming policy measures could involve rate hikes—rather than cuts—because the Iran situation has intensified existing inflation pressures. To hint at this view, officials could slightly adjust the wording of “further adjustments to the benchmark interest rate in terms of magnitude and timing.” Deutsche Bank economists wrote in a report: “Hawkish statements might remove the word ‘additional’ because it implies a dovish tendency, which in fact hints at a continuation of rate cut policies.” The Fed has cut rates three times by the end of 2025. (Dongxin News Agency)