A ‘Powell put’ for the stock market? Don’t even think about it
Think new Federal Reserve Chairman Jerome Powell will exhort his monetary-policy making colleagues to run to the stock market’s rescue if things get hairy? Think again.
Economists are skeptical that a Fed that was already firmly moving toward normalizing monetary policy in the latter years of Janet Yellen’s term at the helm would be easily compelled to change course in the face of a continued market downturn.
For a Fed “that has lamented elevated valuations in the equity market, the selloff in stocks is not especially concerning,” wrote Neil Dutta, head of economics at Renaissance Macro, in a Monday note with the title: “Don’t even think about a Powell put.”
Ray Dalio: Cash on the sidelines will pour in to stem the bleeding in this market
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Ray Dalio is offering some perspective on this decline.
By
SHAWNLANGLOIS
Ray Dalio runs Bridgewater, the world’s biggest hedge fund, and he has a message for those freaking out about the recent selloff: Relax... for now.