Jerome Powell said 2023 should be a year of “significant declines in inflation.”
Reuters
February 08, 2023 / 06:03 AM IST
The broad-based S&P 500 shed 0.2 percent to 4,103.58, while the tech-rich Nasdaq Composite Index added 0.1 percent at 11,894.05.
U.S. stocks rallied to a convincingly higher close on Tuesday, but trade was choppy as investors digested comments from Federal Reserve Chair Jerome Powell about how long the central bank may need to tame inflation.
Powell said 2023 should be a year of “significant declines in inflation.”
His comments renewed investor hopes for less aggressive monetary policy that wavered after a strong U.S. jobs report last Friday. “We didn’t expect it to be this strong,” Powell said at the Economic Club of Washington, referring to the nonfarm payrolls report for January, but it “shows why we think this will be a process that takes quite a bit of time.”
“Powell expects they’re not going to be cutting rates anytime soon, but that there is a good path, that they’re accomplishing what they need to accomplish,” said Shawn Cruz, head trading strategist at TD Ameritrade.
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