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Politico reports that Fed Chair Jerome Powell met with Democrats on the House Financial Services Committee yesterday.
Speaking after Tuesday’s hotter-than-expected CPI report, Powell said recent inflation data was "consistent with what they had been anticipating," according to Rep. Stephen Lynch (D-Mass.), and that the Fed would look to the upcoming PCE report to "give them some more intel."
Powell brushing off a hot CPI is certainly notable and you have to wonder if word got out. We certainly know that Congressmen love to trade and I'm sure their friends would have liked to hear that as well.
It's also important to note that the reversal in the markets took place just as the Congressional meeting ended. it's not unusual for Powell to meet with Congress but he needs to keep market-moving comments to a minimum.
