Easy Does It

Know it sounds funny 
But I just can't stand the pain
--Commodores

Fed chair Powell hints yesterday that Fed may be closer to ending rate hikes than previously expected and the Dow lifts 600 pts.

Is Powell kowtowing to President Trump's frequent claims that the Fed's tightening program has been hurting stock market performance--to the extent that the president now says that he is disappointed with his pick for Fed chair?

Maybe. What we can be sure of is that the Fed will cave at some point and reverse their policy. They will not just cease raising rates; they will begin easing them back toward the zero bound.

Yesterday's blast off amounts to positive feedback on the prospects of returning to easy.