Jerome Powell has indicated that disinflation has begun despite the labor market remaining strong but said there is still a long way to go. Indeed, the significantly hotter-than-expected jobs report that was recently released indicates to the Federal Reserve that ongoing interest rate hikes are appropriate.
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Furthermore, when asked if the central bank would consider changing its inflation target rate from 2% to 3%, Powell was quick to shoot down that idea, stating that 2% was the global standard and that it would not change. As a result, he currently expects inflation to fall to 2% sometime in 2024, indicating that this will not be a short process simply because we are approaching peak interest rates.
As a result, the ETFs that track the major indices saw a lot of volatility in today’s session. These include:
