Wall Street Breakfast
Fed special: Rates held, Powell’s tell and market impact with Chaim Siegel
Jun 14, 2023
Chaim Siegel, leader of the Fed Trader Investing Group, joins SA's Kim Khan to discuss the Fed's decision and its impact on the market. They analyze Powell's remarks, the stock market's response to the Fed's pause, and the discrepancy between rate expectations and the stock market's role.
19:09
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Quick takeaways
- The Federal Reserve's lenient approach to inflation can be seen as bullish for the stock market as it indicates potential for higher prices.
- The market's positive response to Powell's confident outlook and mixed reaction to the Fed's decisions suggests a healthy and bullish trend.
Deep dives
Fed decision and outlook
In the podcast episode, the Federal Reserve's recent decision is discussed. The Fed decided to keep interest rates unchanged, as expected. The dot plot indicated that there may be two rate hikes by the end of the year, and the projections showed higher GDP, lower unemployment, and higher inflation. The conversation highlighted the contrast between what Powell needs to do, which is to be more aggressive in addressing inflation, and what he is likely to do, which is not to be as aggressive. The discussion also emphasized that the Fed's approach of being lenient on inflation can be seen as bullish for the market, as inflation usually leads to higher prices in the stock market.
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