FAST FIVE: Stocks Blast Higher On WSJ Report Fed May Signal "Wait And See" Approach
After tumbling as low as 800 points, the Dow Jones jumped to session highs just after 3:30pm, pulling the S&P with it and blasting the NASDAQ into the green, as a WSJ story quickly made the rounds across trading desks which was centered on the same dovish line first introduced by Powell last week, namely that the Fed is considering whether to signal a new wait-and-see mentality after a hiking rates in December, which could slow down the pace of rate increases next year.
As the WSJ explains, officials still think the broad direction of short-term interest rates will be higher in 2019, according to recent interviews and public statements.
But as they push up their benchmark, they are becoming less sure how fast they will need to act or how far they will need to go and want to assess how the economy is holding up under moves they've already made.
Finally, there is Trump, whose input into this process is certainly relevant, and since the President will do anything to push the market higher at any cost, one almost wonders if the new “Fed whisperer” at the WSJ, Nick Timiraos who has replaced Jon Hilsenrath, is conveing messages from the Marriner Eccles building, or wishful thinking from the White House.
For now, however, whether it was Trump's or Powell's intention to send the market surging courtesy of the well-timed 3:30pm WSJ stick save, the plan has worked.