I hope I am wrong, but I have the feeling that Federal Reserve Chairman Jerome Powell being confirmed today for a second term to head up the Fed for the next four years, is like being appointed Captain of the HMS Titanic on its maiden voyage.
Good luck to Chairman Powell as he tries to bring inflation under control with several 1/2 point interest rate increases over the next several months, together with trying to reduce the Fed’s $9 Trillion Dollar balance sheet with $30 Billion dollar monthly reductions starting in June. To my mind the odds of accomplishing this without causing a recession and steep market decline are significantly less than 50%.
May 12, 2022