By Christopher Versace via Iris.xyz
Last Friday’s favorable December Employment Report showed the domestic economy is not falling off a cliff and comments by Fed Chair Jay Powell reflected that the central bank will be patient with monetary policy as it watches how the economy performs. Those two things kicked the market off on its most recent four-day winning streak as of last night’s close. In many ways, Powell gave the market what it was looking for when he shared the Fed will remain data dependent when it looks at the economy and its next step with monetary policy.
Taking a few steps back, we’ve all experienced the market volatility over the last several weeks as it contends with a host of issues that we here at Tematica have laid out through much of the December quarter. These include:
- U.S.-China trade issues
- The slowing economy
- A Fed that could boost rates twice in 2019 and continues to unwind its balance sheet
- Brexit and political uncertainty in the Eurozone
- And more recently, the government shutdown
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