He did another such pivot on Friday in prepared remarks for a speech to business leaders in Dallas. He said that,"the economy is not sending any signals that we need to be in a hurry to lower rates."
They did it again on November 7, cutting the FFR b y 25bps. But now, Powell is pushing back against market expectations of more rate cuts any time soon. Just last Thursday, at his presser, he claimed that the FFR was still too restrictive and had to be lowered to the neutral FFR. We expect both yields to be range bound between 4.25% and 4.75% over the rest of this year and possibly into next year .
We were surprised that the Bull/Bear Ratio rose to just 2.91 during the November 12 week, which included the big post-election rally . We thought the BBR might jump above 3.00 and closer to 4.00.