Update: It seems the market can't make its mind up about whether Fed Chair Powell has made his mind up about inflation...
Shortly after the comments below, Powell reiterated that "we don't want to fall behind the curve on inflation" and the market swung back to a hawkish interpretation...
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What the market interpreted 48 hours ago as hawkish, is now dovish.
On Tuesday Fed Chair Powell proclaimed boldly:
"CONFIDENCE ON INFLATION GETTING STRONGER"
700 Dow points lower and VIX back above 20 and we arrive at this morning and Powell's flip-flop:
"NO STRONG EVIDENCE OF DECISIVE MOVE UP IN WAGES, MORE LABOR MARKET GAINS CAN OCCUR WITHOUT CAUSING INFLATION"
So dovish Powell is back and stocks are ripping higher...
And the dollar is dumping as gold pops.