AAP Podcast #35: Another Fed rate hike, now what?

Fed Chair Powell recently completed his May Fed policy press conference that followed the Fed’s lifting interest rates by another 25 basis points to 5.00%-5.25%. Joining AAP’s Chris Versace to break it down and dig deeper into the message Powell looked to communicate is Street Smarts’ Todd Campbell. The two start off discussing Powell’s comment the road to 2% inflation isn’t like to be smooth and that the Fed is apt to be at this for some time then shift into Powell’s comment a rate cut isn’t likely in the cards for 2023 based on what he’s seeing. While Powell described the Fed will be looking at many data points and the future course of monetary policy will be data dependent, it sure seemed like he is laser-focused on the jobs market.

Powell attempted to walk that back some, but Chris and Todd dig into that as well as what’s been happening with earnings expectations as we move past the mid-point for the March quarter earnings season. With the market expected to be rangebound, the two discuss what catalysts could break it out to the upside on a sustained basis, and the odds of that happening in the next few months. Todd and Chris also discuss “sell in May and go away” leaning into some data shared by AAP team member Carley Garner.

All that and much more in this post-Fed meeting edition of AAP Podcast.