Like Goldilocks, Chairman Powell thinks Fed Policy is neither too hot or too cold, but just right!

Federal Reserve Chairman Jerome Powell on Wednesday used a softer tone to describe where interest-rate policy presently is, in what could be construed as implying fewer interest-rate hikes to come.

“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” Powell told the Economic Club of New York.

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The 10Y-2Y Treasury curve shot up on Powell’s porridge comment.

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And the Dow shot up 500 points on Powell’s capitulation on raising rates.\

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Like Goldilocks, Powell thinks Fed Policy is neither too hot or too cold, but just right!

Bugs Powell?

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