Stocks, bonds popped after Fed chair says rate hike unlikely

 


Then the rally vanished as higher-for-longer reality dawned

Problem is, Powell didn’t explicitly signal a rate cut was coming this year either, and said it will probably take longer for central bankers to gain enough confidence in the downward trajectory of inflation to consider easing policy. 

That reality check triggered an abrupt reversal in equities, which ended lower on the day. 

Treasury yields trimmed some of their decline, with the policy-sensitive two-year yield holding below the 5% threshold — but not by much.

Bloomberg 2 maj 2024

https://www.bloomberg.com/news/articles/2024-05-01/jerome-powell-offered-markets-a-reprieve-it-vanished-in-a-blink


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