Jerome Powell said a lot of shit today and I guess we'll have to wait until the close to draw any definitive conclusions about the extent to which he "successfully" navigated his first testimony on Capitol Hill without sending shockwaves through markets with an errant comment, but it seems like he did ok.
Yes, yields are up and sure, that's predicated on his generally upbeat take on the economy (and remember, in this perverse world, good news is bad news to the extent it tips a more aggressive Fed), but the bottom didn't entirely fall out for stocks at any point as he suffered through a tedious and largely asinine Q&A with lawmakers.
Anyway, Powell made a couple of comments on stocks that are worth noting. There was the obligatory "we don’t manage the stock market” line. He was "honest" enough to state the obvious, which is that stocks are of course part of the decision calculus. This is the reflexive relationship that has been deeply ingrained in markets over the past several years. It's the "removal of the fourth wall" to quote Deutsche's Kocic. The market effectively co-authors the policy script and is thus no longer simply an observer of a self-contained policy na
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