From the Desk of Ian Culley
The FOMC handed down the expected 25 basis point rate hike yesterday. Yet markets didn’t react until Fed Chair Jerome Powell spoke 30 minutes later.
That’s right, he dropped the D-word – “disinflation.”
To be clear, I don’t care what he said. Instead of hanging on the Fed Chair’s words, I prefer to focus on the markets. I find it more enjoyable.
But, boy, did markets respond!
The most striking aspect of yesterday’s reaction was highlighted by the relative strength of growth stocks.