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Perspectives

Markets Drop as Fed’s Powell Doesn’t Provide Definitive View Forward

Steven Wieting

By Steven Wieting

Chief Investment Strategist and Chief Economist

August 1, 2019Posted InInvestment Strategy

  • Markets gyrated after Fed Chairmain Powell failed to provide unambiguous dovish commentary on the interest rate outlook. 
    • This highlights how sharply many asset prices have moved on central bank easing expectations in recent months. 
  • While heightened easing expectations risk greater market volatility near-term, we generally agree with the Fed's assessment that the US expansion can be extended in the coming year with modest policy actions, particularly if trade shocks are avoided.

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