Bloomberg Surveillance Instant Reaction: Jay Powell on the Fed Decision
9 snips
Jan 28, 2026 
Jeffrey Rosenberg, Senior portfolio strategist at BlackRock, links equity gains and AI investment to consumption and term‑premium dynamics. Stephanie Roth, senior analyst at Wolf Research, breaks down inflation drivers and resilient consumer behavior. They discuss Powell's cautious tone, market reactions, goods versus services inflation, tax‑refund spending and how AI may reshape growth and rates.
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Fed Sees Reduced Inflation-Labor Tension
- Jay Powell framed the decision to hold rates as reflecting improved balance between employment and inflation risks.
- The Fed sees both upside and downside inflation risks as diminished, guiding a cautious stance.
Powell Likely Finished Cutting Rates
- Stephanie Roth argued the Fed is comfortable with improving data and likely done cutting under Powell.
- She expects the economic backdrop to keep cuts off the table for the remainder of his term.
Stimulus And Sticky Inflation Shape Near-Term Outlook
- Panelists highlighted tax refunds and consumer strength as near-term growth drivers.
- Sticky inflation may persist early in the year, making initial rate cuts politically and economically difficult.