Powell stokes market rally with promise of ‘patience’ on rate rises


Fed chair signals cautious approach to tightening despite very strong US jobs report

Federal Reserve chair Jay Powell offered an upbeat assessment of US economic prospects following a strong jobs report on Friday, easing fears of a 2019 downturn that had spooked investors in recent weeks.  Mr Powell said markets had moved “well ahead of the data” in pricing in risks to the US economy, following a sharp sell-off on Thursday and deep losses for equity investors during December. “US data seem to be on track to sustain good momentum into the new year,” the Fed chairman told a conference in Atlanta. Along with his comforting words about the health of the world’s largest economy, Mr Powell said the Fed would take a “patient” approach to monetary policy tightening, contributing to a rally which sent the S&P 500 up by 3.4 per cent in New York.

Lascia un commento