Deutsche Bank Warns Powell's Remarks Were ‘Misunderstood’ by Markets
- Fed chief fed rally saying rates ‘just below’ neutral range
- Wage growth will require steeper borrowing costs, Slok says
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Skeptics are warning U.S. stock investors they overdid it with their exuberant reaction to comments from Jerome Powell on Wednesday.
Traders read too much into the Federal Reserve chairman’s comments that suggested interest rates may not need to go much higher, according to reports from Deutsche Bank and RBC Capital Markets. Instead, they should focus on fundamental economic data that suggest the U.S. central bank will need to raise borrowing costs to keep wages and inflation in check.