Jerome Powell Offered Markets a Reprieve. It Vanished in a Blink

-- Traders on Wall Street cheered on Wednesday when Federal Reserve Chair Jerome Powell signaled he didn’t see oncoming interest-rate hikes despite inflationary pressures. The celebration didn’t last long.Treasuries Rally With Fed Not as Hawkish as Feared: Markets Wrap

The fact that the market reacted at all to the idea that rate hikes are likely off the table shows how much sentiment has shifted from the start of the year, when the consensus called for multiple rate cuts and an expected steady downtrend in inflation. Forecasts for higher interest rates were few and far between.

The stakes for investors were highlighted by Powell when he said that while he believes current rate policy “is restrictive, and we believe, over time, it will be sufficiently restrictive,” it “will be a question that the data will have to answer.” “It has already run out of steam with the market well off the lows in yield,” he said. “The market probably struggles to run much more given we are in a place of data-dependency.”AI Is Helping Automate One of the World’s Most Gruesome JobsCNN’s Kaitlan Collins Recalls Moment That Prompted ‘Round Of Laughter’ In Trump TrialTrump Unleashes Bizarre 'Word Salad' Answer During Live Nighttime TV InterviewFox 2During an interview that touched on immigration at the U.S.

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