Powell On The Hot Seat

2025-04-20 09:00:00 ET

Summary

• US equity markets steadied this past week while bond markets rallied as investors parsed a surprisingly solid slate of economic data and a decent start to corporate earnings season.
• Early week gains were pared following comments from Fed Chair Powell regarding the inflationary impact of tariffs and the reluctance of the Fed to step in to support markets.
• The hawkish comments sparked a series of blistering critiques by President Trump, accusing the Fed Chair of "playing politics" and posting that his "termination cannot come fast enough."
• On the heels of a tumultuous two-weeks which included its worst-week since the COVID plunge followed by the best gains since November 2023, the S&P 500 declined 1.4% this week.
• After substantially lagging the broader market last week amid a historic surge in Treasury yields, real estate equities were the top-performing market segment this week, buoyed by a pullback in benchmark rates alongside a solid start to REIT earnings season.

Real Estate Weekly Outlook

Following a wildly volatile stretch following the unveiling and subsequent delay of "reciprocal" tariffs, US equity markets steadied this past week while bond markets rallied as investors parsed a surprisingly solid slate of economic data and a decent start to corporate earnings season. Early week gains, however, were erased following comments from Federal Reserve Chair Powell regarding the inflationary impact of tariffs - and the reluctance of the Fed to step in to bolster markets - which sparked a series of blistering critiques by President Trump , accusing the Fed Chair of "playing politics" and posting that his "termination cannot come fast enough" - introducing another source of uncertainty for a market that is desperately seeking some policy clarity....

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