Excerpt from Yahoo Finance quoting DataTrek’s Nick Colas:
….”Instead, the stock rally could be sparked by the Fed’s guidance about monetary policy in 2019.
“For U.S. stocks to drift higher this week, the Fed will have to strike an easier tone about future rate hikes without signaling undue concerns about U.S. economic growth,” wrote Nick Colas, co-founder of DataTrek Research, in a note to clients Monday.
But doing so may force them to downgrade U.S. economic growth forecasts for 2019, Colas said.
“Changing course on rates without that air cover will make it look like the Fed is targeting asset price volatility (a.k.a. the “Fed Put”) or – worse – that the central bank is taking orders from the White House,” Colas noted, referring to President Trump’s months-long criticism — which occurred as recently as Monday — of the Fed’s monetary tightening”….