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John Authers

Now That Powell Has Convinced Markets He Means It

The inflation-fighting upshot for asset allocation is that stocks are likely to do better than bonds — maybe over the next decade.

Powell clears up any misunderstandings.

Powell clears up any misunderstandings.

Photographer: Valerie Plesch/Bloomberg

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Jerome Powell seemed to get the message across this time. After the most recent Federal Open Market Committee meeting (last Wednesday, but it already feels much longer ago), bond yields fell as he laid out an extremely hawkish agenda in his press conference. The conventional wisdom is that traders took Powell’s repeated insistence that the economy was strong enough to withstand repeated hikes as reason to be optimistic about the economy, rather than as a statement that he had no need to keep rates easy.