5.8 C
New York
Friday, March 31, 2023

Weekly Comic: Powell Dovish Turn Fuels V-Shaped Recovery Much to Trump’s Delight

Weekly Comic: Powell Dovish Turn Fuels V-Shaped Recovery Much to Trump's Delight

Investing.com – Following a turbulent end to 2018, U.S. stocks have had a stellar run this year with the benchmark and blue-chip Industrials up about 11%, and the tech-heavy rising around 13%.

The rally has been helped in the most part by a recent dovish shift from the , which last month sent the clearest signal yet that its three-year drive to tighten monetary policy is close to an end.

The U.S. central bank pledged to be patient with further interest rate hikes following its late January policy meeting, as risks to the economy mount. It also said it could alter the pace of its balance sheet reduction “in light of economic and financial developments”.

The Fed’s dovish tilt marks a significant change to the stance it stressed only a few months ago, leading to some in the market to believe that a steep drop in stocks late last year forced Fed Chair Jerome Powell to cave and side with the bulls.

The dovish shift came as President Donald Trump repeatedly attacked the Fed for raising rates.

Trump, Powell and Treasury Secretary Steven Mnuchin had at the White House together on Feb. 4, which was described as “very casual”.

“Chairman Powell gave the president an overview of the economy and what he was seeing, which was quite strong and consistent with his public comments,” Mnuchin said.

“It was, I think, a terrific meeting for them to get to see each other. They had not met since Jay Powell was put into office,” Mnuchin added.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles