Stocks gain as Powell maintains dovish stance

7:55 PM July 29, 2020

Jerome Powell started the press conference at 7:30 pm BST and repeated that the Federal Reserve remains committed to use all of its tools to help the economy. Key takeaways from Powell's press conference:

  • Household spending recovered about half of decline

  • Overall economic activity remains below previous levels

  • Q2 real GDP drop will likely be the biggest on record

  • Fed aims to ensure strong recovery and to limit damage

  • Some indicators of credit and debit card spending deteriorated since June

  • Recovery is unlikely until people feel they are safe

  • Rising virus count weighs on economy

  • Ongoing downturn will require continued fiscal and monetary support

  • Fed did not ask Congress for power to lend to bankrupt companies

Jerome Powell stopped short of making any groundbreaking comments and stuck to the previous narrative. He also did not comment much on any fiscal measures that are being taken into consideration now.

Stocks started to move higher at the start of the press conference. S&P 500 continued to gain throughout the presser and moved above 3,250 pts. EURUSD swung around the 1.1790 handle.

US500 moved above 61.8% retracement of recent drop during Powell's presser. Source: xStation5


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