UPDATE: Federal Reserve Chair Jerome Powell is set to deliver remarks today at the George Shultz Memorial Event at 01:00 GMT / 20:00 ET. This highly anticipated speech will feature a Q&A session, but analysts warn not to expect any insights on monetary policy due to the ongoing blackout period.
The Federal Reserve’s blackout period restricts officials from discussing monetary policy in the lead-up to Federal Open Market Committee (FOMC) meetings. This blackout began on the second Saturday prior to the upcoming FOMC meeting and will conclude the Thursday following it.
As the markets await Powell’s remarks, the lack of monetary policy commentary could leave investors feeling cautious. The blackout period aims to maintain market stability and prevent any premature speculation about interest rates or economic forecasts.
With Powell’s presence at the memorial, the focus will likely be on honoring the late George Shultz, a prominent economist and political figure, rather than on pressing economic matters. This is an opportunity for Powell to reflect on Shultz’s contributions while steering clear of sensitive financial discussions.
Investors and economists will be watching closely to gauge any indirect signals from Powell’s address. While the immediate focus remains on honoring Shultz, the event may still shape perceptions about the Fed’s future trajectory, even without direct comments on policy.
Stay tuned for updates following the event, as Powell’s words may still influence market sentiment leading into the next FOMC meeting.
