The Fed: Markets think Powell ‘blinked’ in Dallas

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Federal Reserve Chairman Jerome Powell speaks during a Financial Stability Oversight Council meeting Oct.16, at the Treasury Department in Washington, D.C.

It wasn’t easy to parse the comments Federal Reserve Chairman Jerome Powell made in Dallas last week.

Related:Fed watchers left puzzled by what Powell was trying to communicate

But while he was in classic, two-handed economist mode — talking about the strength of the U.S. economy while also noting headwinds abroad, and in housing — markets seemed to have reached a conclusion that he was dovish.

You can see the difference looking at the CME’s FedWatch calculator, which derives probabilities based on trading in fed funds futures contracts.

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