Jerome Powell, the U.S. Federal Reserve Chair, managed to sink stock markets in a matter of about eight minutes. That is how long his speech was before markets reacted adversely. Stock markets had been trending higher over the past few months on hopes the Fed would be less aggressive, taking a “dovish pivot,” as inflation may have peaked. Hopes were that the Fed would raise rates in September by 0.50% - 0.75% and then one smaller hike later in the year and pause. Was this wishful thinking?
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Commentaries are published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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