Powell's press conference is being panned as a rather unartful stating of the Fed's case. He did not say that things did turn in October that caused the Fed to soften some. Critical element people wanted to hear. Instead, they perceive a Fed chair who is either unwilling to address what everyone knows or does not see what everyone sees. Neither is a good situation. Thus, Powell did not sing the siren song to the market, and there are some pretty big swings the past hour and still ongoing.
Of course Powell could not say 'okay, no planned hikes for 2018' given it had 3 hikes on the table. But he did not come close to talking a good game, good enough to assure the markets that the Fed chair is thoughtful, sees the issues, and is willing to react. That did not come across.
So, the markets are lower but they are trying to put in a relief move from the post-FOMC selloff here with a half hour left. We will see.
SP500 -36.02, -1.41%
NASDAQ -134.11, -1.96%
DJ30 -312.02, -1.31%
NASDAQ 100 -2.17%
Jon Johnson, Chief Market Strategist
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