Last Week Recap

The global stock market rebounded strongly last week as the Federal Reserve Chairman Jerome Powell struck a surprisingly dovish tone in his speech last week. Speaking to the Economic Club of New York, Chairman Powell said that interest rates were currently “just below” neutral. That comment was a stark contrast to what he said in October, that rates were “long way” from neutral. The change in stance could very well be influenced by US President Donald Trump as President Trump said that he is “not even a little bit happy” with the Fed Chairman.  Treasury Secretary Mnuchin said that President Trump “liked” Fed Chairman Powell’s speech that helped propel the stock market after a disappointing November. The odds of December rate hike currently stands at 85.2% but many are predicting next year there will only be just one hike instead of the initial two …