By now, you would probably have come to realise that what really drives the market these days is what the US Federal Reserve (Fed) says and does.
It was then not a surprise that everyone was focused on what Fed Chairman Jerome Powell had to say in his testimony to the US Congress and Senate this week.
When he mentioned ‘demand destruction’, it led an initial bounce as investors became more confident of a potential scenario where interest rates may not go up as much by year end.
These hopes were further boosted when the final reading of the University of Michigan consumer sentiment survey showed a 5-year inflation expectation of 3.1%. This was back to where it was for most...