Our mission is to help you obtain financial freedom. Checkout Our Youtube Channel Checkout Our Youtube Channel

Summary of Fed Chair Powell’s March 6 Testimony

Key Takeaways:

  • Fed Is On Track To Cut Rates This Year
  • Inflation Has Eased Notably
  • Fed Needs Greater Confidence On Inflation Before Cutting Rates
  • Fed Rate ‘Is Likely At Its Peak’ For Current Cycle
  • Rate Cuts Will Likely Be Appropriate This Year (2024)

ChartChamp’s Analysis:

  • There is an emerging narrative where the markets are so strong that no rate cuts are needed. These narratives are always inaccurate and dangerous to follow.
  • The markets were too optimistic with anticipation as high as 6-7 rate cuts in 2024. The realistic expectation is 2-3 rate cuts in 2024.
  • It is increasingly difficult for the Fed to reach their 2% inflation target, which was an expected challenge.
  • Smart money is worried about not getting any rate cuts, which could affect economic growth and earnings.
  • The world is facing supply-side challenges and governments are not doing enough to fix these challenges.
  • The Fed pause is bullish, once rate cuts start there tends to be a 20% decline for the stock market on average, but pausing for too long is a concern here as well.

ChartChamp socials: https://linktr.ee/realchartchamp

Inline Feedbacks
View all comments

More ClearValue Insights

Default Thumbnail

SLV Reached the $27.31 Price Target

In the last update I discussed how SLV had a successful breakout, and the price target has reached the exact target of $27.31. There has been a selloff from the Iran FUD, but I think SLV can rebound and continue to trend up towards the other price targets. Previous SLV Update: The rejection exactly at […]

Read More
Default Thumbnail

GOLD Continues to Climb Towards $2,567.50

The Iran FUD led to a pullback across the financial markets, including for GOLD. However, GOLD has rebounded, and continues to trend up towards the $2,567.50 price target. ChartChamp socials: https://linktr.ee/realchartchamp

Read More
Default Thumbnail

Understanding the Recent Surge in Oil Prices

In recent weeks, the oil market has witnessed a notable increase in prices, driven by geopolitical tensions and concerns over supply constraints. This uptick, marked by a more than 20 percent rise since mid-December, with a significant jump of over 10 percent in the past month to around $90 per barrel of Brent crude oil, […]

Read More