Powell Needs to Speak Up to Stop Ill-Fated Market Rally, Strategist Says

Fed must ‘bring the big guns out’ to cure misperception
Strategist says persistent inflation necessitates more hikes

Seema Shah, chief strategist at Principal Global Investors, says she doubts the sustainability of the recent equity markets rally driven by investors “ignoring” bearish policy comments from Federal Reserve officials. “I think you need to bring the big guns out. We need (Fed Chair) Powell to come out and speak. So until he speaks I think the market rally can keep going,” Shah says on “Bloomberg Markets.”Source: Bloomberg

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By John McCorry, Guy Johnson, and Alix Steel

August 11, 2022 at 5:57 PM UTC

This article is for subscribers only.

Principal Global Investors’ Seema Shah is no stock market bull but says the rally that erupted Wednesday may continue until the head of the Federal Reserve steps up and stops it.

“The market is underestimating the risks out there,” the firm’s chief strategist said in a Bloomberg Television interview on Thursday. “They need that catalyst to remind them, and that has to come from Jerome Powell.”