New Narrative Alert: Fed Chief Jerome Powell is to blame for the volatility in stocks. We think the news that really drove the market higher last week was the report that economy-wide pre-tax corporate profits were up 10.3% from a year ago (and up 19.4% after taxes – thank you tax cuts!). Focus on fundamentals, not post-event explanations.
Tag Archives: Fed Chair Jerome Powell
“Fading” Fiscal Stimulus; Really? Fed Chair Jerome Powell and others have started a new narrative about economic “headwinds.” They think past rate hikes, slower foreign growth, and “fading fiscal stimulus” should slow the Fed’s rate hikes. But is fiscal stimulus really fading?