by ZeroHedge News Staff
Powell to traders today…
The bigger than expected QT taper announcement juiced markets (stocks and bond prices up, dollar down) into Powell’s press conference, then got spooked lower as he admitted “inflation has shown a lack of further progress… and gaining confidence to cut will take longer than thought.”
But that dip didn’t last long and yields puked, stocks soared, gold rallied and the dollar puked…
Source: Bloomberg
The market shrugged off Powell’s comments about “whether rates are at their peak will depend on data” which opened up the path of possible rate-hikes, but he dd add that “he doubts next move will be a hike.”
CNBC’s Steve Liesman asked the big question that everyone should be asking: you are ‘sort of easing’ by reducing QT while holding rates flat because you’re not confident that inflation is under control – wassup with dat?
Powell replied with some words that meant nothing, stating that they have long planned on tapering QT and claimed that ‘reduction in balance sheet run-off is not policy-easing’.
“This is not the easing you’re looking for…”…
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