News Article | August 2, 2019 |
Reuters (August 2, 2019): As Federal Reserve Chair Jerome Powell on Wednesday described why the central bank’s interest rate cut should not be seen as the start of a lengthy easing cycle, the U.S. stock market was losing value at a rate of over $25 billion a minute.
Terri Spath, chief investment officer at Sierra Investment Management, said Powell’s poor job of defending the Fed’s decision in his press conference Wednesday contributed to the “complete state of confusion” among investors.
“He did what was expected but the market was looking for more to go on,” she said. “I’m firmly in the camp that the Fed didn’t need to cut and this contributes to the sense that there’s an unease over the gains we’ve earned this year” in the stock market, she said.