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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“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.
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.”
