1 day ago
For stocks to stay hot, they will now have to overcome a perception problem after Fed Chairman Kevin Warsh came across as surprisingly more hawkish than many investors thought when he got the gig.
"While we expect underlying fundamentals here to remain solid, the presumption of higher rates does present a sentiment headwind," Citigroup US equity strategist Scott Chronert wrote in a new note.
Delivering his debut keynote address as Fed chair at the Jackson Hole Economic Policy Symposium on Friday, Warsh adopted a hawkish stance on interest rate policy, warning that the central bank's fight against inflation is far from over.
With inflation "running above our 2% target … the Fed's predominant focus right now should be on prices," Warsh said.
Warsh characterized recent inflation numbers as "concerning" and added that "we must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed … otherwise, we have work to do."
#underlying
"While we expect underlying fundamentals here to remain solid, the presumption of higher rates does present a sentiment headwind," Citigroup US equity strategist Scott Chronert wrote in a new note.
Delivering his debut keynote address as Fed chair at the Jackson Hole Economic Policy Symposium on Friday, Warsh adopted a hawkish stance on interest rate policy, warning that the central bank's fight against inflation is far from over.
With inflation "running above our 2% target … the Fed's predominant focus right now should be on prices," Warsh said.
Warsh characterized recent inflation numbers as "concerning" and added that "we must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed … otherwise, we have work to do."
#underlying
