Sanity has gone when warnings of a deteriorating outlook sparks a rally in equities. Yet, in a world where markets are addicted to monetary easing, Federal Reserve Chair Jay Powell’s comments to a Capitol Hill hearing on Wednesday briefly saw the S&P 500 breach the 3,000 mark. Robust jobs numbers had put future interest rate cuts in doubt but Mr Powell’s predictions of a slowing US economy reassured investors that the Federal Reserve still plans on cooking the next hit.
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