What Powell just said…
Powell’s comments, my interpretation at 2:30 PM CDT.
1. Economy is showing strength, making us think about more hikes down the road.
2. So hiking is the bias, however progress on inflation is continuing.
3. Part of the positive story is the supply side improvements being seen in the economy.
4. With that said we are trying to implement policy with lags, not forcing issues.
5. The Dot Plots live as decaying forecasts.
6. Growth is running above our projections due to a combination of supply side and labor growth.
Bottomline….market is headed higher, move will accelerate once small caps get the bid, initially by covering by short sellers, and then by deep growth stocks.