While a 25-bps interest-rate hike announced on Wednesday by the Federal Reserve Chair Jerome Powell hardly came as a surprise, market participants seem to have gone overboard over a simple acknowledgment that inflation “has eased somewhat” and “the disinflationary process” had started.
While the Fed chair also cautioned that it would be “very premature to declare victory or to think we really got this” and expressed the need for “substantially more evidence to be confident that inflation is on a sustained downward path,” the tweak in his previous language was enough for the market bulls to be in action.
