Quote on The Federal Reserve slowed its drive to rein in inflation from Mohit Ralhan - Chief Executive Officer, TIW Capital
“The Fed’s decision of 25 bps hike was in line with market’s expectation. While, we await for the minutes of Fed’s meeting to understand the finer nuances, the press conference of Fed chairman was taken very positively by the markets. While, Mr. Powell emphasized on the continuation of hawkish stance till the inflation in US declines to 2% level, his commentary affirming hat disinflationary process has started in some parts of the economy ring music to the ears of bulls. It indicates that the downward trend in the inflation will also continue and Fed may not increase policy rates beyond 5%. While the risk on the economy and earnings front still remains, the US market now appears to be pricing only one 25 bps hike before Fed halts this phase of continuous hikes in policy rates. We still remain cautious, since corporate earnings is likely to spring a negative surprise and the economy woes may start taking precedence once euphoria on Fed’s expected policy road map settles”
Mohit Ralhan – Chief Executive Officer, TIW Capital