Here’s how Powell devastated one of the bond-market’s most popular trades

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“Mid-cycle adjustment in policy.” Those words from Fed Chair Jerome Powell have devastated one of the bond-market’s most popular trades.

In one fell swoop, Federal Reserve Chairman Jerome Powell dealt a sharp blow to one of the bond-market’s most popular trades at the Fed’s post-meeting press conference after the U.S. central bank cut interest rates by 25 basis points on Wednesday.

But Powell’s remarks suggesting the Fed’s cut in July would be more of an insurance move against an economic slowdown led the yield curve to flatten instead. His comments came as a surprise to the crowd of Wall Street investors and traders who had hoped for the Fed to deliver on the market’s dovish expectations.

Recently, strategists at Bank of America Merrill Lynch, Deutsche Bank and BMO Capital Markets have all favored yield-curve steepening trades that simultaneously buy short-term Treasurys and sell longer-term debt.

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I lost so much every time this fool speaks.

The market did what it had to do. Any trader blaming Fed is not a trader.

Let's backtest each of your spewings for the last 10 quarters, did you get it right? Are you just chaos fluff bullshyt reporters? Do you really honestly care about proper predictions that help your viewers/readers? Visionaries don't work for Marketwatch, that is a prediction

2nd time in less than a year that he’s let his political issues with trump blind his judgement as he set fire to the market

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U.S. markets gyrate after Fed cuts rates, stocks fallWall Street turned negative after Federal Reserve Chairman Jerome Powell in a pr... U.S. markets twerk after Fed cuts rates, stocks drop to the flo Powell's conference is supposed to manage expectations! In the past chairmen were smarter & more cautious! powell is a bad communicator and one misunderstanding can cost billions! POTUS Bet they will go up tomorrow!
Fuente: Reuters - 🏆 2. / 97 Leer más »