I will have more to say shortly, but in the meantime for those who are interest here is Jay Powell’s full press conference after the FOMC announcement of a 50bps rate cut to the federal funds rate.
Wall Street gives us the most immediate takeaway — Treasury yields dropped after the FOMC announcement, but almost immediately after Powell’s press conference began they began rising, and the 10 Year Treasury yield rose above where it was just before the announcement.
At the same time, stocks, which rose on the announcement, turned south again during the press conference.
Proving that the Federal Reserve’s ultimate weapon for manipulating interest rates is not the federal funds rate, but Jay Powell’s flapping gums!
More to come shortly.
The FOMC Cuts Interest Rates, But Jay Powell Jawboned Them Back Up Again