The Fed is the investor’s friend after all

Fed chair Jerome Powell

A few tweets from the Tariff man, an equities correction as close to a bear market as makes no difference, and suddenly the Federal Reserve has changed its tune.

In a speech on Wednesday, Eric Rosengren, president of the Boston Fed, talked up the generally optimistic forecasts of economists in contrast to the sour tone of financial markets recently. 

But he also conceded: “If the pessimism evident in financial markets eventually shows through to economic outcomes, there would be less need, and perhaps no need, for further increases in interest rates.