But what do equity investors need to hear from the Fed chair to keep the rally going? Market strategists who spoke with MarketWatch have a few thoughts.
Derek Tang, an economist at Monetary Policy Analytics in Washington, told MarketWatch that any sign that Powell is holding on to the possibility of another 75 basis point hike in December and rate increases into the first or second quarter of next year would likely “really hit stocks” and lead to a resumption of this year’s equity selloff, which sent the S&P 500 SPX, -0.75%, Dow Jones Industrial Average DJIA, -0.39% and Nasdaq Composite COMP, -1.03% into a bear market.
“Chairman Powell will need to convince traders and investors alike that the Fed is still resolutely determined to curtail inflation, but that it can be accomplished with a steady dose of lower rates,” said Quincy Krosby, chief global strategist at LPL Financial. While inflation continues to run near its fastest pace in 40 years, the Fed does have some progress to report, market strategists said.
It’s possible Powell could use the slowdown in wage growth to justify moderating the pace of rate hikes, market strategists said.
A beautiful market pull back is coming, Prepare your portfolio for more pain, they'll break everything 📉🔨
We are know this time 1% not 0.75%.
has there been any time no ramifications of fed for the mkt?
federalreserve Gentlemen's, Don't be greedy in a bear market, sell with profits or prepare your portfolio for a Downturn 📉 I'm expecting 75 basis points (just like Paul Volcker beating inflation in the 80's) however, 0.75% or 0.50% rate hike and get ready for more pain.
Duh....
Powell needs to resign, he’s useless.
“—Vivien Lou Chen contributed to this article.”
Deep stuff..
Hopefully he’ll resign as he has been a disaster
Basically all he can say is we're f***** and he resigns LPNational
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