Wall Street Reacts to Powell: 'Very Clear Pushback' on 2023 Fed Pivot
by Emily Graffeo and Isabelle Lee, Bloomberg
Kevin Simpson weighs in: “Wall Street Reacts to Powell: ‘Very Clear Pushback’ on 2023 Fed Pivot”
Federal Reserve Chair Jerome Powell’s message to investors was short and blunt: The central bank will likely keep raising interest rates and leave them elevated for some time to battle inflation.
In a speech of less than 10 minutes delivered at the Kansas City Fed’s annual policy forum in Jackson Hole, Wyoming, Powell warned that “restoring price stability will likely require maintaining a restrictive policy stance for some time.”
Kevin Simpson, founder of Capital Wealth Planning and Portfolio Manager of Amplify ETFs DIVO:
“It does give validity to the more hawkish people on the Fed that sometimes get overlooked because the chairman will have a more dovish approach or a different interpretation,” he said. “This validates a lot of what we heard yesterday from Fed governor after Fed governor, explaining that this is a real priority, they’re taking it seriously and they’re going to do what they need to for as long as it takes to accomplish the goal, which is bringing down inflation.”
Learn more: Amplify CWP Enhanced Dividend Income ETF (DIVO)
Twitter
LinkedIn
YouTube