Technical Review

Powell Wasn’t as Dovish as Markets Believe

Financial markets and pundits were quick to conclude that Chair Powell had become a Dove since he didn’t push back against the aggressive 4-5 cuts in the Funds rate that Wall Street has been expecting in 2024. An economist at a major investment bank said, “ It was “12 doves a-leaping .” A glimpse at the Dot Plot shows this was hardly the case as I’ll illustrate later.

I too expected Chair Powell to throw some cold water on the rate cut narrative. It’s superficial though to think Chair Powell has done a 180 from the consistent statements he’s made over the last year and as...

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