As the Q&A session begins for Fed Powell, stocks have rebounded off their lows:
- S&P index -29.26 points or -0.51% at 5709.26.
- NASDAQ index -131.35 points or -0.73% at 17937.91.
- Dow industrial average -119.66 points or -0.28% for 2459.42.
Some of the comments:
- No need to redefine price stability.
- I don’t think we need to rethink how we look at inflation
- The general thought is that a one-time jump in prices does not need a monetary policy response
- Still very uncertain about what will be tariffed and for how long if it turns into a series of actions, or if tariffs are larger, or expectations start to move, that would influence how the Fed reacts.
- The costs of being cautious are very very low.
- The cost of the Fed being cautious is low.
- The economy does not need the central bank to do anything right now.
- The Fed is trying to work with large data sets I.e. credit card companies, to get real time information, and it is very helpful
This article was written by Greg Michalowski at www.forexlive.com.
