Powell’s confidence that rates are high enough to bring inflation down is rubbing off on markets
One of the main takeaways from Fed Chairman Jerome Powell’s press conference and the central bank’s policy statement Wednesday is the growing possibility that the rate-hiking cycle is already over, economists said Wednesday.
In its policy statement, the Fed said it will consider many factors when “determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time.” “Another way to describe assessing how long policy will remain restrictive is to decide when to make policy less restrictive — that is, rate cuts,” Adams said, in an emailed comment.
“You know what that means don’t you? It puts the few industrial companies that are still generating good numbers at a real premium,” Cramer said, before adding a soundbite from Beethoven’s “Hallelujah” to drive the point home.
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