Powell is doing the only thing he can right now. History tells
us that starting a cycle with a jumbo cut leads to market
participants getting their asses handed to them. All he could do
during this presser was to say every thing is completely
perfect...better than ever....and then hope the historical cycle is
broken. If he slips and hints even a tiny bit at weakness on
top of the already negative 50bps signal of weakness, the market is
toast (for a few days). We just got a jumbo cut and I've never
heard a Fed Chief more uniformly positive during the press
conference.
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Powell is doing the only
Posted by bthefnd on 18th of Sep 2024 at 02:56 pm
Powell is doing the only thing he can right now. History tells us that starting a cycle with a jumbo cut leads to market participants getting their asses handed to them. All he could do during this presser was to say every thing is completely perfect...better than ever....and then hope the historical cycle is broken. If he slips and hints even a tiny bit at weakness on top of the already negative 50bps signal of weakness, the market is toast (for a few days). We just got a jumbo cut and I've never heard a Fed Chief more uniformly positive during the press conference.