From Yahoo Finance: 2025-03-19 17:02:00

Wall Street rallied and Treasury yields fell as the Fed’s new projections showed lower growth and higher inflation. Despite some uncertainty, investors focused on Chair Powell’s belief that tariff-driven inflation will be temporary. Market moves included a spike in consumer cyclicals, a dollar selloff, and gold hitting a fresh high. The Bank of Japan kept rates on hold amidst global economic uncertainty. Inflation expectations remain muddled, with consumer surveys showing varying outlooks. Financial markets’ long-term inflation outlook suggests minimal concern. Consumer expectations are volatile, making it difficult for policymakers to interpret signals. A Cleveland Fed paper suggests inflation predictions are often wrong, with consumers and financial markets struggling to forecast accurately. Fed Chair Powell remains confident in anchoring long-term inflation expectations, despite short-term fluctuations. Various economic indicators globally could impact markets tomorrow. Recommended articles provide insight into current market trends. Opinions expressed in the article are those of the author and do not reflect Reuters News views. Trading Day newsletter offers daily market updates.



Read more at Yahoo Finance: Markets soar as Powell brings back ‘transitory’