URTY - Short And Sharp: Fed U-Turn - Slice And Dice It The Conclusion Is The Same
By Seema Shah, Global Investment Strategist, Principal Global Investors
The market has been celebrating the Federal Reserve (Fed’s) more dovish stance, but two weeks after its U-turn, investors remain split over whether the Fed was responding to December’s market meltdown or fears of a weakening economy. I wrote* in the FT earlier this week regarding the former, but what if it’s the latter?
Most US data show a still-robust economy, yet I have considerable sympathy for any Fed concerns about the underlying economy. While the Institute for Supply Management ((ISM)) surveys point to continued