Explaining the Market’s Reaction to Jerome Powell’s Speech

Yesterday, Jay Powell and the FOMC gave us their decision on interest rates. In the accompanying statement and the subsequent press conference given by Fed Chair Jay Powell, they explained to some extent how they arrived at that decision and, more importantly, they also explained how they see the rest of the year panning out. As I’m sure you are aware, that news was greeted with glee by equity traders, with all three major stock indices jumping to record-high levels in yesterday’s session. But is that response appropriate, and can it…