‘Taking out the hike that just happened’: Traders ignore Powell and begin pricing in a Fed rate cut as soon as June

MarketWatch/Vivien Lou Chen/5-4-2023

“Just one day after Federal Reserve Chairman Jerome Powell signaled that rate cuts anytime soon are off the table, following the central bank’s 10th consecutive hike, traders took in all of his words — and ignored them.”

USAGOLD note:  So much for “Don’t fight the Fed?” For a Fed chairman already worried about credibility, Wall Street’s rebellion is not likely to sit well – especially if it ends up getting in the way of policy implementation. We do not recall any former Fed chairmen being faced with the same problem.