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Powell is handing out candy, the market is indulging, but will it lead to tooth decay later?
Powell shifted his tone, releasing a "dovish" signal, which made the market instantly excited like a child seeing candy. Lower interest rates mean a decrease in the cost of funds, and asset prices are being "fed sugar," which is indeed very sweet in the short term.
But don't forget, eating too much candy can easily lead to cavities. Behind the interest rate cuts is a concern over slowing economic growth. Short-term benefits may be a prelude to long-term recession. Wall Street is certainly happ
View OriginalPowell is handing out candy, the market is indulging, but will it lead to tooth decay later?
Powell shifted his tone, releasing a "dovish" signal, which made the market instantly excited like a child seeing candy. Lower interest rates mean a decrease in the cost of funds, and asset prices are being "fed sugar," which is indeed very sweet in the short term.
But don't forget, eating too much candy can easily lead to cavities. Behind the interest rate cuts is a concern over slowing economic growth. Short-term benefits may be a prelude to long-term recession. Wall Street is certainly happ