Fed credibility and the rate path: MarketWatch weighs Powell’s ‘Too Late’ label against jobs and inflation ‘beats’
MarketWatch argues recent macro surprises have bolstered the case that the Fed avoided political pressure, as investors recalibrate expectations ahead of leadership transition chatter.
### The macro narrative
MarketWatch points to a week of macro headlines suggesting:
- **Inflation is coming down**
- The **jobs market** is better than expected
- **Real wages** are rising
The column frames this as a moment when investors and the public reassess the Federal Reserve’s approach—particularly the importance of perceived independence from political pressure.
### Why stock markets care
Equities react not only to economic data, but also to expectations for:
- The future **rate-cut or rate-hike path**
- Risk appetite (how tight financial conditions remain)
- Sector leadership (growth vs value; cyclicals vs defensives)
### What to watch
- Incoming labor-market and inflation releases and whether they confirm the trend
- Fed communications around the balance between growth and price stability
- How leadership transition narratives influence rate expectations and market volatility
_Source: MarketWatch (link above)._
Source: MarketWatch