What Wall Street Thinks Of Jerome Powell Now

What Wall Street Thinks Of Jerome Powell Now

The bond market wasted little time taking Jerome Powell up on his implicit invitation to push US yields higher. At the risk of resorting to hyperbole, it was something of a bloodbath by noon in the US. Intermediates paced losses on the curve and 10-year yields pushed up through 1.75%. Tech shares weren't amused. "Feels like [the] 10-year running to 2% is the 'right move' now with the US economy tracking ~6% in Q1," Nomura's Charlie McElligott said Thursday. "As such, secular growth (bond proxy
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7 thoughts on “What Wall Street Thinks Of Jerome Powell Now

  1. I’m sure there’s no shortage of brilliant economists and researchers at the Fed, but as an institution it has been consistently wrong or behind the curve with respect to macro trends over the last twenty years. In the real world — where people actually earn and spend money — inflation is already running at more than 2% — and is likely to be running north of 3% by Labor Day. Do I think inflation will fall back from those levels in 4Q/2022 with GDP growing at 4%-6% over the next two, three quarters? No. Do I think the Fed will hold off till 2023 to start raising rates? No. Does the bond market think the Fed will wait till 2023 to raise rates? Clearly not. Invest accordingly.

  2. I think JP knows the next big move is toward dis/deflation……so not tightening……….Stock market is addicted to Zero short rates…..Any hint of a taper may cause a panic.

    1. Did anyone watch the Fauci/Paul sparing episode? This vaccine may be 2-8 times less effective on variants and there are variant trouble spots in CA and NY.
      This is not over.
      Hopefully, the world can keep the death rate down, but I am definitely not going to Paris this summer.

      1. So much digital ink flowing to comment the fed speeches and actions. At same time, confusion over what is acceptable outcome. What is the desirable objective? It’s not to keep price stable as they are not, will not, and no one cares. It’s not labour as before the pandemic it clearly didn’t matter. So what are they trying to do? It seems it’s sole purpose now is to keep the price of financial assets up. Why would the fed care if growth stocks crash or the 10-year rate reach an historically low 3%. Is this promoting the greater good? Candid and naive questions from a candid mind.

  3. It’s as if the investor class so focused on the Phillips Curve a couple years ago has suddenly forgotten about the Phillips Curve. The religion of monetarism runs very deep.

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