Powell Likely to Hold Rates Steady, Echoing Past Fed Leaders🚨🚨
Nicholas Colas of DataTrek Research believes that Fed Chair Jerome Powell won’t cut interest rates after this week’s meeting. His decision follows a pattern set by former Fed chairs Greenspan, Bernanke, and Yellen who all took a firm stance on inflation near the end of their terms.
Powell is expected to stick to this cautious approach to protect his reputation and maintain independence from political pressure.
Markets expect no rate change in June or July, but the Fed might update its economic outlook this week. Historically, the S&P 500 has climbed an average of 16% in the last year of a Fed chair’s term.
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