PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia discusses Jerome Powell’s comments at the press conference yesterday.
“Jerome Powell spoke at the press conference. He took a lot of questions. Apparently, he sees a much stronger economy and higher inflation but no rate hikes. That was enough for all the indices to quickly turn positive. The Dow ended up 189 points or half of 1 percent. The S&P was up as well as the NASDAQ, and the Russell 2000 was up three quarters of 1 percent. The Volatility Index was down a little bit. So, the Federal Reserve says they want to see some moderate increases above 2 percent in inflation, maintaining 2 percent for an extended period of time. They will continue buying bonds until they see real progress to the 2 percent goal.”
“He made it very clear that they will not be reacting on projections. They want to see real progress. This is a fundamental change in how the Federal Reserve does business. And he was very clear about that. He sees possible rate increases in 2023, but he said the economy is very fragile. It is very volatile, and it is very uncertain, even though he does believe that the economy is going to maintain some strength. The question is, how far is he willing to go over and above the 2 percent mark before he takes some sort of action against inflation? We don’t know. He didn’t indicate that. We’ll see how markets react for the rest of the week and into next week.”
Dan Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on more than 660 radio stations and several television networks nationwide, including FISM.TV, viewed on several post-cable television platforms and online.
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