Markets appear to be dismissing the central bank’s more pessimistic take on inflation, as the S&P 500 nears a new high.

Jay Powell, the Fed chair, has signaled that investors need to tamp down their hopes for multiple interest rate cuts this year.Susan Walsh/Associated PressThe markets and Fed diverge again

The bull market rally is continuing to run on Thursday. The S&P 500 is poised to set yet another record, as investors see inflation in retreat — even if Fed policymakers don’t quite see it that way.

The gulf between investors and the central bank is widening again. After Wednesday’s tepid Consumer Price Index report, the odds in the futures market have risen for two interest rate cuts this year, a prospect that has triggered a stocks-and-bonds buying spree.

Not so fast? The Fed’s “dot plot” projection released Wednesday sees just one

Keep reading this article on Andrew Ross Sorkin – Author New York Times.

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