Economics
A Stock Market Dying to Know What Powell Knows About the Economy
- Fed chairman suggests there’s room to cut interest rates
- UBS: clients holding more cash to sleep comfortably at night
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Two things keep investors awake at night these days. One is wondering how worried to be about manufacturing. The other, a nagging concern that Jerome Powell has better insights into the economy than they do.
Hop on Twitter and you see it, people lambasting the Federal Reserve chairman for even considering stimulus when 224,000 jobs were just added to payrolls, home sales are bouncing back and stocks sit at records. And yet in congressional testimony this week, Powell seemed more committed than ever to cutting rates. If you own stocks, you’re partly happy, partly scared.