Fed interest rate outlook: need to convey that the economy is solid but can support the bottom

On March 17, Federal Reserve Chairman Jerome Powell faces a tricky task this week, both to reassure investors that the economic fundamentals remain solid and to convey that policymakers are ready to intervene if necessary. Powell's touting of the resilience of the U.S. economy comes at a time when Trump's rapid escalation of the trade war has sparked unease and sent U.S. stocks tumbling sharply over the past month. Consumer confidence is falling and bond yields are falling as concerns about the economic outlook intensify. Dominic Constance, head of U.S. macro strategy at Mizuho Securities, said: "Powell needs to send some kind of signal that they're looking at [the stock market]. He warned that while Powell may make it clear that officials won't be targeting the stock market, they can't ignore the recent decline.