Explaining the Market's Reaction to Jerome Powell's Speech

  • 📰 OilandEnergy
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 68%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

The shift in Fed Chair Jerome Powell's tone is important to note because it tells that rate cuts are coming almost no matter what the data say.

Yesterday, Jay Powell and the FOMC gave us their decision on interest rates. In the accompanying statement and the subsequent press conference given by Fed Chair Jay Powell, they explained to some extent how they arrived at that decision and, more importantly, they also explained how they see the rest of the year panning out. As I’m sure you are aware, that news was greeted with glee by equity traders, with all three major stock indices jumping to record-high levels in yesterday’s session.

Traders were therefore worried the FOMC would take a more hawkish stance at this meeting. They didn’t. In fact, if anything, a parsing of the language used by Powell suggests that the committee are even more committed to that path than they were before. As Seema Shah, Principal Asset Management’s Chief Global Strategist put it when interviewed by CNBC, the wording yesterday suggests that “…he Jay Powell needs a good reason not to cut rates, rather than a reason to cut rates.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 34. in İE
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Preston Makers Market returns for March featuring over 70 local businessesSecret Industries at a previous market Pic: Preston Makers Market / Facebook The Flag Market will once again be full of local creatives when the Preston Mak
Source: blogpreston - 🏆 82. / 55 Read more »