Volatility Is Here to Stay for Now

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Our View

What's the old saying, “The truth will set you free?” Well, it did yesterday when Fed Chair Jerome Powell said it would likely take longer than expected for the central bank to have confidence inflation is moving toward its 2% target. 

But he also tried to cool down speculation that the Fed might need to raise rates again to fully control inflation. At the end of 2023, I was adamant that the Fed could not lower rates even though the market was pricing in 5-6 cuts in 2024. Now, the recent selloff is 100% tied to that. 

It's been a wake-up call for the public and the markets and guess what? The volatility is going to increase into the summer and into the fall elections.