FT News Briefing Powell’s comments send markets lower, oil rises on Opec+ moves, UK’s listing shake-up
Mar 5, 2021
Jay Powell's recent remarks have sparked a notable sell-off in U.S. stocks and Treasury debt, raising concerns among investors. Meanwhile, OPEC and Russia have opted not to increase oil production, causing prices to climb. The discussion also highlights the UK's efforts to attract tech companies to its stock exchange with proposed regulatory reforms, aiming to enhance its global competitiveness. The impact of Brexit on London's financial landscape and the challenges in the Texas power market add further intrigue to the economic conversation.
AI Snips
Chapters
Transcript
Episode notes
Market Reaction to Powell's Comments
- Fed Chair Jay Powell's comments on steady monetary policy triggered a sell-off in bonds and equities.
- Markets reacted negatively despite Powell not saying anything substantially new.
Reason for Market Reaction
- The market's negative reaction to Powell's comments was due to recent changes in the financial landscape, not the comments themselves.
- Investors sought explicit pushback against rising interest rates, but Powell only offered general assurances.
Market and Biden's Stimulus
- Biden's stimulus package is already priced into the market.
- It contributes to rising inflation expectations and treasury yields, raising questions about the Fed's response.