Market analysts expect Fed Chair Jerome Powell to maintain his dovish stance on inflation, market volatility expected.

From Investing.com: 2024-05-15 07:55:13

Wolfe Research economists analyzed Fed Chair Jerome Powell’s recent comments, emphasizing his dovish stance and perspectives on inflation trends. Powell mentioned ongoing labor market rebalancing and the restrictive policy rate, projecting services inflation over 2%. The focus now shifts to the upcoming April CPI report, with expectations for potential market volatility.

Powell believes inflation will decrease gradually, with the market eagerly awaiting the April CPI report for confirmation. The consensus on April’s CPI is narrow, indicating the significance of any deviation from expectations on stock prices. Wolfe economists remain cautiously optimistic, waiting for clear signs of recession or Fed action before turning bearish.

Despite recent inflation data concerns, Wolfe economists remain cautiously optimistic, awaiting the CPI report’s release for further market direction. Powell’s dovish stance aligns with expectations, with inflation trends being closely monitored. Any deviation from April’s CPI consensus could trigger short-term market fluctuations, emphasizing the need for vigilance.



Read more at Investing.com: Analysts don’t see Powell changing his dovish stance even if CPI surprises By Investing.com