70% gain within 90 mins on Thursday as the S&P 500's eight-day winning streak has come to an end following hawkish comments from Fed Chair Jerome Powell and a disappointing government debt auction. It would have been the benchmark index's largest streak since 2004 and the 32nd such feat since 1928.
Holding his horses?
Federal Reserve Chair Jay Powell said Thursday that monetary policy is in "restrictive territory" and putting downward pressure on inflation, but he also made it clear the central bank is keeping its options for more interest rate hikes on the table.
"If it becomes appropriate to tighten policy further, we will not hesitate to do so," Powell said in a speech before the International Monetary Fund in Washington.
"We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of overtightening," Powell added Thursday.
No more hikes?
Powell warned that the FOMC was "not confident" it had achieved a level of sufficiently restrictive monetary policy and it wouldn't hesitate on further tightening if warranted.
Investors do not expect the Fed to vote for additional hikes, but the majority of the rate-setting committee has penciled in one more rate hike this year, leaving the last meeting in mid-December a possibility. Officials will draw up fresh estimates for the path of interest rates then.
Following the speech, JPMorgan said his comments were a reminder that the Fed still has a tightening bias, while SA analyst Leo Nelissen feels that, "Powell just told the markets to calm it with the dovish expectations."
Please click Like 👍, Comment 💬 & Repost 🔄 this article found at the bottom of your screen. Follow me for the latest news, trading ideas & strategies to ride the market daily with profits!
@CaptainTiger @TigerStars @MillionaireTiger @Daily_Discussion @Andreana @Aqa @KylerLee @koolgal
Comments