Federal Reserve System Chairman Jerome Powell on Thursday speaking at the Cato Institute reiterated his commitment to inflation as expressed at the Jackson Hole symposium. His speech came after ECB had just raised rates by 75bps, earlier in the week the RBA with 50bps and Bank of Canada also raised by 75bps. Powell took a decidedly hawkish tone at Jackson Hole which sent US stock markets sharply lower. The chairman sent stock futures lower when he reminded his to intention … Continue reading “Fed’s Powell Reiterated his Commitment to Inflation at Jackson Hole in Cato Speech”
What to Expect as Stocks and Bonds Ride High Ahead of Powell and ECB Speakers at Jackson Hole
The S&P, Dow and Nasdaq indices all pushed to new session highs ahead of Jerome Powell’s speech at Jackson Hole, Wyoming set for Friday at 10:00 a.m. ET. Two ECB appearances are expected. Isabel Schnabel and Francois Villeroy will appear on a panel on the “outlook for policy post-pandemic.” We discuss the key points and agendas that markets will react to. Today a combination of short covering and hopes of a measured rate-hike path fueled the buying. The positive bias … Continue reading “What to Expect as Stocks and Bonds Ride High Ahead of Powell and ECB Speakers at Jackson Hole”
Fed’s Waller Says You Don’t Want to Overdo Rate Hikes Giving Bonds Some Relief
Federal Reserve Governor Christopher Waller speaking after back-to-back red hot inflation data said on Thursday, “with the C.P.I. data in hand, I support another 75-basis point increase” at the July FOMC. He added for him a 75 bps hike in July gets us to neutral which he sees as 2-2.25%. He added that you don’t want to overdo rate hikes. Market responded to the hawk in the bond and currency markets. The dollar came off the rampant surge and US … Continue reading “Fed’s Waller Says You Don’t Want to Overdo Rate Hikes Giving Bonds Some Relief”
Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments
Federal Reserve System Chairman Jerome Powell took a decidedly hawkish tone today which sent US stock markets lower. Fed Chair Powell said it’s a good time to retire the word “transitory” and suggests its appropriate to taper more quickly. He was answering questions in today’s testimony at the joint Senate hearing with Treasury Secretary Janet Yellen before Senate Banking on Coronavirus and the CARES Act. The Fed Chair moved his bias toward the hawkish side which surprised many with the new … Continue reading “Fed’s Powell Rattles Markets With Retire Transitory Inflation and Speed Up Taper Comments”
Fed’s Waller Wants a Faster Taper With Concern If Inflation Embedded Into Wage Demands
The Federal Reserve is continuing to voice it’s concern about inflation, wages and disparities between those who benefited from asset inflation and those who have been hurt by it. Fed Governor Christopher Waller said on Friday the rapid improving job market market and deteriorating inflation data have pushed him towards favoring a faster pace of tapering and more rapid removal of accommodation. “The rapid improvement in the labor market and the deteriorating inflation data have pushed me towards favoring a … Continue reading “Fed’s Waller Wants a Faster Taper With Concern If Inflation Embedded Into Wage Demands”
US Stockmarkets Hit Record Highs Ahead of Jackson Hole
The S&P, Dow and Nasdaq indices all hit record highs on Monday, continuing the sharp reversal off one month lows ahead of Jerome Powell’s speech at Jackson Hole, Wyoming set for Friday, though Fed officials will meet virtually for their annual symposium.