Today, in an interview at the Economic Club of Washington, the Federal Reserve Chair Powell said the Fed would be “patient” in how they want to raise rates going forward. As you know, we thought the Fed made a mistake raising rates in December, and had a terrible communication mistake in the press conference after the two-day meeting. Similar to our view, in today’s Q&A, the Fed chart is not worried about inflation and sees global growth as a risk to their outlook.
The quick summary is there wasn’t much new coming out of his comments, other than to reinforce we should not expect any further rate hikes over coming months. This opens up the opportunity for new highs in the S&P 500 (SPX) as we move through the year, highlighted in our January Macro Slide Deck.
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