- The Fed raised interest rates and signaled more tightening ahead, a hawkish outcome that failed to break the bid in risk assets.
- US stocks rallied alongside Treasuries as falling oil prices lent support to optimism that inflation can be kept under control.
- Bank of America's Savita Subramanian raised her already low S&P 500 year-end target.
- JPM Asset Management's Stephanie Aliaga argues oil prices are a long-term inflation driver but the AI buildout is also having a significant impact, and slowing the AI frontier helps adoption and productivity.
- Goldman Sachs chief US economist David Mericle argues the economy is not overheating, inflation pressures remain manageable and the labor market is balanced, with rising oil prices the complication for the Fed's path.
Quotes
“US stocks rallied alongside Treasuries as falling oil prices lent support to optimism that inflation can be kept under control”
“while oil prices are a long-term driver of inflation, the AI buildout is also having a significant impact”
“the US economy isn’t overheating, inflation pressures remain manageable, and the labor market is in a healthy balance”