USMC - Fed Holds Rates Steady Powell Doesn't See The 'Stag' Or The 'Flation'
2024-05-01 16:30:59 ET
Summary
- The Federal Reserve leaves rates unchanged as inflation progress stalls, pushing rate cuts expectations further out.
- Fed Chair Powell adopts a more dovish tone, mentioning stalled inflation progress, but he also expressed confidence that long-term inflation expectations are anchored.
- Powell dismissed the possibility of a rate hike and emphasized the strength of the economy, supporting risk assets.
- Strong tech earnings and a dovish Fed remove key two obstacles that had likely been leading to consternation in markets lately. The QQQ is a buy.
The widely anticipated FOMC meeting occurred Wednesday against a building current of hawkish speculation due to stalled progress on inflation. As expected, the Federal Reserve left rates unchanged. There has been an undoubted stymying of what has been considerable inflation progress that has empowered hawkish members of the FOMC and pushed expectations for rate cuts out by almost six months....
Fed Holds Rates Steady, Powell Doesn't See The 'Stag' Or The 'Flation'