Watch Live: Will Fed Chair Powell Unleash The Hawknado?
So, as expected, The Fed did nothing on rates, adjusted its dots dovishly (more than expected), and the market kneejerked exuberantly...
Gold, bonds, and stocks all soaring (and dollar dumping)...
George Goncalves at MUFG says:
“At face value it looks like the Fed has gone back to underwriting what the rates market has been pricing in, now we need to see if chair Powell walks this back as it’s not a forecast path but just how median math works, and that we should not take this as a signal, the standard speech that ignores the dots.”
Now it's Powell's turn to tamp down that excitement:
Most likely FOMC walkthru:
— zerohedge (@zerohedge) December 13, 2023
Risk spikes initially after statement is "as expected", Fed dots ease and SEP inflation dips, interpreted by market as dovish capitulation
Then Powell unleashes Hawknado mode during presser, steamrolling Waller comments and slamming risk
Someone needs to talk this silliness back, right?
So, will Powell wreck the 'Wall(er) of worry'?
As UBS so eloquently described:
"The meeting will be followed by Fed Chair Powell delivering the full benefit of his economic insight at the press briefing (this should not take long).
Powell will try to prevent markets from expecting earlier rate reductions.
This task would be a lot easier had Powell not trashed the Fed’s reputation for forward guidance."
Watch the Fed Press Conference live here (due to start at 1430ET):
