Wall Street isn’t buying what Powell, economists are forecasting

Bloomberg/Jess Menton, Alexandra Semenova and Elena Popina/6-15-2023

“Defying the odds, the world’s biggest stock market has recouped all losses caused by the most disruptive monetary-tightening campaign in a generation. And not even recession warnings or fresh monetary threats from Jerome Powell are stopping fund managers as they join the big artificial intelligence-fueled rally.”

USAGOLD note: Such is what happens when market participants know that the central bank is caught between a rock and a hard place. Powell has consistently chosen to fly like a dove when things go south – the stuff of reputation. As for Wall Street, with big bets in place on either side of the rate divide, someone is going to get burnt – perhaps badly.