Markets Should Not Have Been Surprised by Powell’s Assessments

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PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia is reflecting on a rough day in the markets on Wednesday, as well as Federal Reserve Chairman Jerome Powell’s role over the months-long Coronavirus crisis.

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Q1 2020 hedge fund letters, conferences and more

Jerome Powell On Coronavirus

“Yesterday, we saw the Dow down more than 500 points—2.17% down,” Celia said. “We haven’t seen that in a while. The S&P was down 1.75% and the NASDAQ was down 1.5%. The small-cap Russell 2000 index was also down 3.3%. We had a fair amount of volatility, a fair amount of volume, so some conviction here. This all apparently comes after Federal Reserve Chairman Jerome Powell’s speech Wednesday morning.

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I think Jerome Powell has done an unbelievably good job in reference to all that we are battling. And I think he will go down in history as one of the best Federal Reserve Chairmen we’ve ever had. I think the speed in which he operated and worked and got things done is beyond comparison in any other crisis that the Federal Reserve felt it needed to be involved in.

“Powell also complimented the speed in which Congress worked, which I will say is amazing as well, thanks to this administration,” Celia added. “But the real problem wasn’t in what Jerome Powell said, because to me it certainly wasn’t a surprise, but apparently it was a surprise to Wall Street, and that is disturbing. Powell said, ‘While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks.’ Jerome Powell went on to say, however, that the economy should see substantial recovery once the coronavirus is under control.

Jerome Powell made it plain and clear that certainly there continues to be downside risk and there continues to be a lot of uncertainty. Could it be possible that the market, Wall Street and traders didn’t know that? I find this hard to believe, and I’m not sure what they’re watching or what they’re thinking—and I suspect right now they’re not sure either. Of course, this is not the final chapter. Of course, there’s plenty of uncertainty yet, and significant downside risk still is very real.”

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Dan Celia is the CEO and President of Financial Issues Stewardship Ministries. Married to Registered Nurse, Yvonne, in 1980, Dan has two married daughters, is blessed with sons-in law who love the Lord, and has seven grandchildren. Dan has worked for 35 years as an entrepreneur and businessman, starting eight corporations and co-founder of two others. In 1999 Dan sold his Small Trust Company (managing over 900 million dollars) to go into Ministry. Dan has developed and uses a biblically-responsible system of financial management with great success. He started a radio ministry in 1997 as a part time ministry and has seen the Lord expand and bless this ministry to his current full-time ministry. Dan has interviewed newsmakers and pundits like Steve Forbes, Ben Stein, T. Boone Pickens, Tony Perkins, John Alison, Rayola Dougher API, Congressmen, Senators and Presidential candidates. He is proud of his partnership with the American Family Association where he serves as a board member. Dan is now on over 640 stations three hours daily, NRB TV, BizTV, Dove TV and CBN Life Style Network. Financial Issues is heard in every state in America and throughout the internet globally. Financial Issues has supporters from over 17 countries. Dan is a Regular Weekly Contributor to Townhall.com (the number 1 source for conservative news and analyzation). Dan has been a guest on Fox Business, Bloomberg, Salem Radio, Family Net, 700 Club,and many others . He is a conference speaker, author of six books, publishes a weekly newsletter and has been Executive Producer of several video productions and FISM TV is producing original family friendly content and other video projects all keeping with in FISM’s Christian world view.