Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Will the Powell Fed be Steady-as-she-Goes?

February 7, 2018 By Jeremy Jones, CFA

President Donald J. Trump announced the nomination of Jerome Powell to be Chairman of the Board of Governors of the Federal Reserve System | November 2, 2017 (Official White House Photo by Andrea Hanks)

Jay Powell is the new chairman of the Federal Reserve. Janet Yellen’s term was marked mostly by her continuance of Ben Bernanke’s policies. Now, will Powell be a steady-as-she-goes chairman who continues the plan of rate normalization set in place by Bernanke/Yellen? Or will he chart his own course, either ratcheting rates up faster than expected to fight any potential inflation, or putting the pedal to the metal by lowering rates again to combat any drop in asset prices? The FT’s Sam Fleming discusses Powell’s future:

Jay Powell received a brutish welcome from the stock market on his first day as Federal Reserve chairman, but the equity sell-off that spread across the world is unlikely on its own to force him to chart a new course on monetary policy.

While a sustained rout would start damaging business and consumer sentiment as wealth is depressed, the S&P 500 index remains at levels seen as recently as December.

A markets barometer from Goldman Sachs shows that financial conditions at Monday’s close were still nearly 170 basis points looser than they were when the Fed first lifted rates at the end of 2015, suggesting that markets are continuing to support growth.

Traders pared back their bets on a rate rise in March after the stock market slumped on Monday, putting the chances of a move at 69 per cent, according to CME Group’s analysis.

But analysts stressed that US economic prospects remain sufficiently buoyant to keep the Fed on track for three rate rises this year, which was the median forecast from Fed policymakers published in December.

Read more here.

What priorities will Jerome Powell bring to the Federal Reserve?

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Meet your New Fed Chairman
  • Did Powell Just Signal a Cut?
  • This is What Terrorizes the Fed
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Is the Great Job Boom Over? - June 24, 2022
  • Will ESG Do to Steel Prices What It Did to Gas Prices? - June 23, 2022
  • Apple Shares Resilient in the Face of Recession - June 22, 2022

Search Young Research

Most Popular

  • Will the Fed Stick to Its Course?
  • RECESSION? Dow 25,000, $8 Gas, Rising Interest Rates, Spell Mid-term Crack Up
  • Investing During a Recession
  • Swiss National Bank Surprises World with Rate Hike
  • Kellogg Cuts Loose with Split Plan
  • The Power of a Compound Interest Table
  • MONEY TALKS: The Best Service in Paris
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Predictions of MEGA-SPENDING on Metaverse
  • Apple Shares Resilient in the Face of Recession

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Greetings From Paris & Le Bristol Hotel
  • The Most Controversial Restaurant in Paris?
  • Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More
  • Russia’s “Unsubtle” Artillery Attacks Not Necessarily “Archaic”
  • FLORIDA DODGED A BULLET: Elected Superb DeSantis Over Unstable Gillum
  • Biden, a Job Killing Machine
  • Good News for the 2nd Amendment
  • La Fontaine De Mars: Best Sunday Paris Lunch
  • My 10 Favorite Books about France, Plus a Bonus for You
  • BREAKING: Supreme Court DISMANTLES New York’s Unconstitutional Gun Laws

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.