Powell Performance

In a surprise to nobody, the Fed, after raising rates at 10 consecutive meetings over 15 months, left rates unchanged. However, today’s action was hardly benign. Powell elegantly kept the committee united around tightening policy without raising rates. By signaling that there may well be two hikes on tap, he suggested this rate pause may be very brief. Markets have, at their peril, steadily underestimated the determination of this Fed.