VTI - The Doves Are Back In Town: Powell Smashes The Bearish Narrative
2024-03-21 17:17:15 ET
Summary
- The Fed's meeting demonstrated confidence in the current economic trajectory and tempered inflationary forces, leading to a rally in the market.
- Technology stocks like Nvidia, which have high multiples, are expected to have more room to run as rates have likely peaked and cuts are expected.
- The Fed's shift towards a more dovish approach and its confidence in inflation are encouraging for risk assets and supports the market rally.
The market rallied yesterday when the Fed and Chair Jay Powell took an unexpectedly gentle course, demonstrating confidence in the current economic trajectory and tempering of inflationary forces. Based on yesterday's meeting, the balance of power seems to have shifted decidedly away from the hawks and towards the doves, which is incredibly positive for risk assets....
The Doves Are Back In Town: Powell Smashes The Bearish Narrative