US30 Up After Powell, US Inflation
US Inflation
Consumer Price Index (CPI) surged 7% y/y in December, compared to 6.8% prior, the highest level since June 1982. This is when Ronald Reagan was President of the United States and Paul Volcker was at the helm of the Federal Reserve!
On the Core front, CPI rose 5.5% y/y versus 4.9% prior, the highest since 1991.
Powell Testimony
The President of the Fed sounded a bit tame in regards to the central bank's tightening path during his nomination hearing on Wednesday [1], at least compared to last week's minutes and recent commentary and actions.
Mr Powell said that the bank will end asset purchases in March, raise rates over the course of the year and "at some point perhaps later this year allow the balance sheet to run off." It now remains to be seen whether we are reaching a ceiling in the Fed's recent hawkiness.
US30 Reaction
The index had registered new record highs last week, but had since entered a 4-day correction, which was halted on Wednesday with the help of Mr Powell's reserved tone and extends those gains today, after the CPI report.
Inflation was pretty much in-line with expectation and markets may also be thinking that it approaches a peak, as they are not bothered by it for now.
Having defended the EMA100 (black line,) bulls remain in the driver's seat and have the ability to reach 37,000 for the first time in history, but we are not sure if they are yet ready for that.
On the other, Inflation did surge and the central bank seems set for an aggressive normalization path, which may weigh on US30, while the rise seems a bit extended.
Pressure back to the EMA100 (around 36,000) could be in the cards, but a strong catalyst would be required for a move below the ascending trend-line from December lows (around 35,600).
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 19 Apr 2026 https://www.banking.senate.gov/hearings/01/04/2022/nomination-hearing |
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