Powell: Rate Cuts Still on Table Despite Strong Economy, Supporting Bull Case for Stocks
• Powell said strong economic data like a robust labor market is no longer a concern for potential Fed rate cuts
• Good economic news is now seen as positive for stocks since it signals stronger business activity
• Rate cuts due to falling inflation, not economic weakness, supports the bull case for stocks
• Strategists still see 8 rate cuts in the next 2 years despite shifted timeline
• Consensus estimates for 2024 rates remain around 4% despite Powell's comments, backing the bull narrative