Fed’s Powell at Jackson Hole; Inflation: Progress and the Path Ahead, the Market Response

Fed Chairman Powell’s speech from the Jackson Hole Symposium in Wyoming on Friday offered little new but those hoping so were disappointed. The Fed Chairman reiterated that the Federal Reserve is prepared for more rate hikes, though he cautioned they are in a position to “proceed carefully” when it comes to assessing incoming data. Powell acknowledged that the economy has not been cooling as expected, which could be viewed as a signal that more rate hikes are to come, or … Continue reading “Fed’s Powell at Jackson Hole; Inflation: Progress and the Path Ahead, the Market Response”

Fed’s Powell Reiterated his Commitment to Inflation at Jackson Hole in Cato Speech

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”