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Fed Chair Powell 'gave the markets false hope' -CIO

STORY: Continued Nicholson, "In the Q&A part of the press conference, [Chair Powell] wasn't forceful enough - and I think this is what has caused markets to continue to rally off of their lows, because the Chairman constantly makes investors feel that there's light at the end of the tunnel. And I think that rates are going to go higher than people expect."

The Fed raised its target interest rate by a quarter of a percentage point on Wednesday (Feb. 1), yet continued to promise "ongoing increases" in borrowing costs as part of its still unresolved battle against inflation.

U.S. stocks, modestly lower ahead of the Fed rate decision, turned sharply higher as Powell spoke, with the benchmark S&P 500 index climbing about 1% on the session.