CNBC: “Goldman Sachs thinks the market is wrong about Fed Chair Powell, and that could mean 4 rate hikes in 2019”

Excerpt from Jeff Cox’s latest article for CNBC quoting DataTrek’s Nick Colas:

….. “Stocks have been in rally mode since the speech, and yields on government debt have continued to fall. And multiple market experts saw Powell giving a nod to the recent Fed study but then essentially saying it wasn’t pertinent to current conditions.

“Powell took 5 paragraphs of his talk to praise former Chair [Alan] Greenspan’s do-nothing stance on rates in the mid-late 1990s as an example of sound intellectual risk management. Inflation was waning at the time, although many economists thought it would return with a vengeance,” Nick Colas, co-founder of DataTrek Research, said in a note. “Greenspan, to Powell’s thinking, was wise to watch and wait.”

“Yes, he did highlight that the past two recessions (2000 and 2008) saw ‘destabilizing excesses’ and appeared ‘mainly in financial markets rather than inflation.’ But there is no mention in his talk that current financial market conditions show any similar excess,” Colas added”…..

Read the whole article here on CNBC!

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