Jay Powell is in front of the Senate Financial Committee today where he took on bipartisan frustration. Apparently, nobody got the information they requested from the Federal Reserve and a few Senators are hinting it could influence their confirmation vote.
Nobody seemed happy other than Senator Warren, who got a few gifts before the hearing, inducing policy changes at Bank of America.
Powell when through a checklist of observations:
Powell thinks the Fed will end asset purchases in March, raise rates over the course of the year, and allow balance sheet to run off later in the year.
This is a less hectic timeline than was shaping up, as consensus on the street was at four + hikes and immediate balance sheet runoffs. That’s the part that put a little spark in the market, especially the NASDAQ Composite, which is holding above that pivotal trend line. The one-day action (bottom orange) is encouraging.
The market will continue to be on pins and needles. Whether Powell rang the bell remains to be seen by the upcoming data, starting with the CPI report tomorrow and PPI on Thursday.
|thank you and your entire staff for all your clear work.|
Ronald Cadieux on 1/11/2022 4:40:35 PM
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