Jerome Powell made his announcement yesterday that there is more pain to come. I do find it odd that the person that said this will be transitory and gave guidance into this year still claiming this fact is still in his position. Likely still there because his removal would move the market down investors dont like uncertainty I have read thousands of times.
There are well known memes of him at the printer press printing money, many people knew supply demand factors and that this would cause inflation and were puzzled on his remarks over the last couple years.
I will grant that this is something fed chairs havent been through with a virus like this that put panic into the financial markets, causing stocks to drop close to 40% the Dow went from just under 30,000 all the way down to under 19,200 in a very short time within a month.
There were gains on the day leading into his speech but when he spoke the market dropped when he said there will be more pain. There are many that write about his words as he has the granted powers to moved more liquidity into the market or take it away.
Its something interesting to me that someone can be so wrong on their view of the financial markets but still have the confidence of the investor markets another puzzle I am sure will be studied for years to come. The start of this year saw the market start at just under 35,000 now down to just under the highs from 2020 under 30,000 again.
Comments(0)