S&P 500 just shot up 3.0% versus its intraday low after Fed Chair Jerome Powell reiterated that smaller rates hikes could start from December.
Summary of Chair Powell’s remarks
But he still made some comments that weren’t that rosy. Here’s a summary of what Chair Powell said today:
There’s a long way to go to restore price stability
Monetary policy will remain restrictive for a while
Terminal rate will be higher than previously expected
Supply chain issues are showing signs of easing
Labour market despite some improvement, remains tight
Housing inflation will ease but not in early 2023
Also on Wednesday, the Bureau of Economic Analysis reported an annualised gain of 2.90% in third-quarter GDP. Powell added:
I do continue to believe that there’s a path to soft-ish landing. If you look at the history, it’s not a likely outcome but this is a different set of circumstances. I think it’s very plausible; it’s still achievable.
Fed Chair expects PCE inflation to come in at 6.0% for October versus 6.2% in the prior month.
This is a developing story. Return in a few minutes for more updates!
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