But any confidence he manages to instill may be fragile. This weekend also brings the Group-of-Seven summit in France, and hopes for a more harmonious mood between U.S. President Donald Trump and his counterparts are so low that summit leaders are already making plans to scrap the traditional joint statement.
Bret Barker at TCW Group Inc. expects that any snap back from the current lows in yields based on Powell’s remarks will be short-lived.
“Our overall long-term view is that rates are heading lower,” he said.
He’s favoring the two-year part of the curve, as he reckons the market’s call call on the path of rates this year is about right. He’s just not expecting any strong endorsement from Powell at the Wyoming retreat.
For Barker, it’s hard to see why Powell would drop a big message into thin markets, “when he can just wait a couple more weeks and liquidity will be back and it’ll be September.”
This article provided by Bloomberg News.