Central Banks

Wall Street’s Feel-Good Start to 2023 Sets Up Perilous Fed Day

  • Risk-on rotation powers big rally in crypto, credit and stocks
  • It all sets up potential showdown between Fed and Wall Street
Jerome PowellPhotographer: Brendan Smialowski/AFP/Bloomberg
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Once-hated world stocks, bonds laced with interest-rate risk and even deadbeat crypto coins have just closed out a big new-year rally.

Now Wall Street is wondering how Jerome Powell will react.