Investors to Watch Powell’s Tone as Market Teeters
- Equities rally depends on view of where inflation is heading
- ‘Unwinding of the AI trade is something to watch’: Buchbinder
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As the Federal Reserve’s two-day meeting begins, investors have accepted that the central bank probably won’t be cutting interest rates this time. But with the stock market at a tenuous point, what they’re looking for is any signal from Chairman Jerome Powell on which way inflation is going.
“Powell’s tone on inflation is crucial for Wall Street because traders need to hear that price pressures are continuing to ease,” said John Belton, a portfolio manager at Gabelli Funds. “There are clearly potential black swans out there.”