The Fed has pulled ‘a rabbit out of a hat,’ strategist says

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The Fed has pulled ‘a rabbit out of a hat,’ strategist says

Roth Capital Partners Chief Economist and Macro Strategist Michael Darda shares his

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on inflation and Federal Reserve policy on Market Domination.

Darda characterizes the current stock market (^DJI, ^IXIC, ^GSPC) weakness as “a very minor pullback” following two years of “totally uninterrupted stock market gains for the S&P 500.” He notes this pullback is “not surprising,” citing inflated valuations, political uncertainty regarding economic policy, and the Federal Reserve’s “indefinite pause.”

“It’s a bit of a mess from a policy perspective, and that mess is occurring with very high stock market valuations on a historical basis,” Darda explains.

Regarding inflation concerns, Darda suggests there is an “overreaction” in markets, pointing to “very anchored inflation expectations.” However, he cautions, “There are some warning signs here … I mean, it’s really an environment where we’ve had the Fed pull a rabbit out of a hat.”

“They were able to hike interest rates [by] 500-plus basis points, slow inflation, slow nominal growth, and not kill the economy. I mean, it’s really historic, a ****** swan in a good way,” he further tells Yahoo Finance.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

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#Fed #pulled #rabbit #hat #strategist

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