Powell and the markets talk past each other

Powell's remark that was balanced by warnings about the uncertain outlook for inflation and policy proved irrelevant for markets. All that they heard was the good news. — Reuters

MARKETS surged on Wednesday after Jerome Powell, the Federal Reserve (Fed) chair, indicated that the world’s most powerful central bank would slow the pace of rate increases this month.

The fact that this remark was balanced by warnings about the uncertain outlook for inflation and policy proved irrelevant for markets. All that they heard was the good news.