On the eve of the Fed's announcement, some on Wall Street started to get flashbacks to Chair Jerome Powell's communication miscues.
"We would not be surprised if the market sells off after the FOMC partly because we think Chairman Powell may be overdue for a press conference gaffe," says Christopher Harvey, head of equity strategy at Wells Fargo Securities.
In July, Powell characterized an interest rate cut as a "midcycle adjustment" rather than the beginning of a period of successive cuts. "We would not be surprised if the market sells off after the FOMC partly because we think Chairman Powell may be overdue for a press conference gaffe," Christopher Harvey, head of equity strategy at Wells Fargo Securities, said in a note to clients on Wednesday.
"The last few times we heard him speak we got the distinct sense that the message he intends to convey is not always received as such by the markets," Harvey said.
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