Jerome Powell's testimony is rattling markets. Here's what 4 strategists are saying about the Fed's hawkish stance.
On Tuesday, Jerome Powell began his two-day testimony before Congress, with hawkish comments from the top central banker dragging markets lower and pushing up the odds of a bigger rate hike at this month's policy meeting. , Powell acknowledged the difficulty of getting stubborn inflation down to the Fed's 2% target, and noted that there's still work to do and higher rates to come.
"The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," he added.Charlie Ripley, senior investment strategist, Allianz Investment Management While some market participants might have been caught off guard by Powell's comments, the reality is that he is largely affirming what the bond market has already priced in. The terminal level for policy rates will be slightly higher than previous expectations as the timing of an economic slowdown has been pushed further down the road.""Powell just said the quiet part out loud.
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