Zero Hedge: In the typical “headfake” kneejerk reaction to any Fed comment, stocks initially dropped on the headline that “tapering is on the way”, but immediately rebounded with spoos rising to a a new record high of 4500, suggesting the market anticipated Powell’s comments and that Powell was indeed more dovish than expected.
“and do not harm the oil and the wine.” Rev. 6:6
Overall, Powell’s remarks were just what the market wanted – nothing too hawkish, or too dovish. Indeed, with stocks hitting all time high, they were just right. Or, as Renaissance Macro summarizes…
Sometimes you don’t really need to read a Fed speech to know what is in it. Upon the news, stocks are up. Yields are down. The dollar is weaker. Corporate credit has tightened. This is the market telling you Powell was dovish, on net. Read More