Fed Rate Hike Pause Rally
Fed Chair Warsh's recent comments suggesting inflation risks have declined reduce near-term expectations for rate hikes, supporting equity valuations.
Too little corroboration in the last 3 days to call a trend (5 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Long term, I don't see a bear market, especially with markets having sharply reduced the odds of a September Fed hike and hyperscaler CapEx remaining intact."
"Investors have been buoyed by cooler inflation, which lowers the risk of more interest rate hikes for now."
"The S&P 500 and the Nasdaq opened higher on Friday after data showed the U.S. economy unexpectedly shed jobs last month, raising doubts about a September interest-rate hike by the Federal Reserve. The Nasdaq Composite rose 186.3 points, or 0.71%, to 26534.66 at the opening bell."
"The well-behaved CPI print likely lowers pressure on the Fed to hike soon. Consumer prices fell -0.4% m/m in June, better than expectations of -0.1% m/m, and headline inflation eased to +3.5% in June from +4.2% in May."
"Fed Chairman Kevin Warsh said on Wednesday that inflation risks have come down in recent weeks. At a minimum, his comments provided no fuel for speculation on a near-term July rate hike."