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The fate of the market could be in the hands of "Powell Put"



The president has previously expressed skepticism about programs such as quantitative easing, which helped push Fed's balance over $ 4.5 trillion. And he has talked about the importance of giving the central bank enough ammunition to fight the next crisis, which low interest rates would make more difficult.

Strategist Noah Weisberger at AB Bernstein said that current Powell put is probably "out of money", which means that it has not yet been reached, and the next has a "prize", or the point at which the driving force of action will create in, it's even lower.

That means "a more serious thing It may be necessary to worry about reactivating it next time," says Weisberger, the company's managing director of the US portfolio strategy.

However, the market believes that at least the Fed is not in The least will raise prices anytime soon.

Futures pricing points to no chance of an interest rate increase at least through January 201

0, according to CME's tracker, in fact, dealers indicate a 31 percent chance of a cut on the first Federal Open Market Committee meeting next year, with the actual reduction coming around mid to late year when the implicit fund price is 2.17 percent.


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