Powell's lean to job market under microscope as Fed revisits strategy
1. Fed Chair Powell prioritizes full employment over low jobless rates for interest rates. 2. This shift may sustain economic growth and indirectly support the S&P 500.
FAQ
Why Bullish?
By prioritizing employment over rate hikes, markets may perceive economic stability, boosting investor confidence. In 2010, similar dovish signals helped sustain bullish momentum in the S&P 500.
How important is it?
The shift in policy reflects a critical change in economic strategy that could guide investor expectations, influencing long-term S&P 500 performance.
Why Long Term?
A continuous focus on full employment could sustain consumer spending, positively impacting corporate earnings over the long-term, as seen in post-2008 recovery.