Investing.com – Market watchers and Fed aficionados got many things they didn’t expect from new Fed Chairman Jerome Powell, but should otherwise be happy with his first performance testifying before Congress.
For one, Powell answered questions in a personable, direct, succinct manner, without the rambling and technical jargon his predecessors sometimes displayed.
What he said was perfectly clear, even if it wasn’t what people may have wanted to hear.
Most importantly, Powell introduced the possibility of a fourth interest rate hike this year, taking a generally hawkish tone compared to his predecessor.
Powell also said he does not see the stock market correction and the ensuing volatility as a threat to the economy or a factor in interest rate policy.
And Powell does not see an ominous inflationary threat from the Trump administration’s fiscal programs.
Mostly, Powell stated the obvious–that both the economy and inflation were stronger than they were in December, when the Fed laid out its three rate-hike scenario.
So, hold on until mid-March, for what’s expected to be the Fed’s first rate hike of the year and its new quarterly forecast.
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Source: Investing.com
