Powell’s Familiar Tune Is Music to the Market’s Ears
Investors think they are at last on the same page as Jay Powell and the Federal Reserve.
Waiting for the jobs data.
Photographer: Justin Sullivan/Getty Images
To get John Authers' newsletter delivered directly to your inbox, sign up here.
Jay Powell’s remarks at Stanford University Wednesday were a rehash of a very familiar chorus, but that didn’t stop everyone from hanging on his every word. The Federal Reserve is very much data-dependent, and rate cuts will happen when there’s enough confidence that inflation is well within control. The last mistake Chair Powell will want to make is to ease too soon, especially after all the work done to rein in inflation from decades high. It’s almost unthinkable what a premature rate cut that caused inflation to spiral again would have on the Fed’s credibility.