Fed Chair Jerome Powell's retirement of the term 'transitory' could have a bleak effect on risk assets, according to Cole Smead of Smead Capital Management.
Powell surprised markets earlier this week by altering his previously consistent tone on inflation, telling U.S. lawmakers that "it's probably a good time to retire that word and try to explain more clearly what we mean."
Powell surprised markets earlier this week by altering his previously consistent tone on inflation, telling U.S. lawmakers that "it's probably a good time to retire that word and try to explain more clearly what we mean." "In effect, people are buying the 10-year feeling insulated on the longer end of the curve, but the reality is no asset will benefit from the cost of capital rising, and you can kind of see the same thing going on in certain U.S. equities," Smead said.
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