Why Is The Market Ignoring Powell's "Freudian Skip" And Piling Into Stocks: JPM, Goldman Explain

As investors digest the Fed's "skip" day, while clearly ignoring Powell's warning that a July fed hike is the base case, here are a few thoughts from JPM's and Goldman's trading desk. But first, here is the Fed's mouthpiece, WSJ reporter Nick Timiraos, clearly telling that "Powell's Freudian "skip" suggests a July rate rise is the base case, even though (as always) the economy can intervene. “There is an every-other-meeting strategy, and the July decision has all but been made."

Powell's Freudian "skip" suggests a July rate rise is the base case, even though (as always) the economy can intervene

“There is an every-other-meeting strategy, and the July decision has all but been made,” says @TimDuy https://t.co/9L0TMh9HXy

— Nick Timiraos (@NickTimiraos) June 15, 2023

However, judging by the melt-up across stonks, nobody believes either Powell or Timiraos. Here is JPM's Market Intelligence strategist Andrew Tyler to put the market reaction in its proper context: