and warning that high rates could overtighten the economy into a recession.
But the economy looks to have stayed resilient over the last year, despite the Fed's aggressive tightening. He cited trends in commodity prices, housing prices, and money supply, which have stopped going down and are now stabilizing. "Those very high rates that scared me and the market earlier on in the year don't seem to be having as much of a negative effect as I had figured," he added."And that combined with the fact that Powell now is saying, 'I'm going to look at both sides of the equation,' is very positive for the market."
While Powell left the door open to more rate hikes, markets are expecting the Fed to keep them steady at least through the rest of the year, per the