The More Powell Spoke, the More Stock and Bond Markets Rallied
- Markets seized on financial conditions comment, says Rosenberg
- Odds increasing Fed is declaring victory too soon, says Dutta
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Behind closed doors, Federal Reserve policy makers worry rallying markets are impeding their efforts to control inflation. But every time Jerome Powell goes out in public he gives them more room to run.
When the Fed chairman took to the podium Wednesday afternoon, stock markets were hovering around their session lows. The central bank had just delivered an eighth straight rate hike and signaled more were to come, and some of the uber-bullishness on display in markets this year had faded a little.