Financial News vs. Noise
Love it when I can use the same meme two days in a row. Once again the market got crazy into the close, this time due to Powell.
And once again the daily on SPY looks like a clear cut short.
But lot more data still to come and futures are green. Perhaps people slept on FOMC an changed their mind? Or perhaps we go green to red?
Any fear that the next Fed move would be a hike was dashed pretty quickly…
"I think it's unlikely that the next policy rate move will be a hike."
Powell also doesn’t seem to fear stagflation….
"I was around for stagflation. It was 10% unemployment. It was high single digits inflation. And very slow growth. Right now we have 3% growth. Which is pretty solid growth, I would say. By any measure. And we have inflation running under 3%. So I don't really understand where that's coming from."
Maybe he’s right, but this is the guy who thought inflation was transitory.
Fed Chair Jerome Powell Projects Optimism, But Inflation Data Are in the Driver’s Seat-WSJ
Maybe I’m misreading, but this looks like a dig…
Federal Reserve Chair Jerome Powell tried to keep the central bank’s options open Wednesday by sticking with his view that interest rates are restrictive and that inflation was likely to resume its decline.
But a string of disappointing readings on price and wage pressures have led investors to put less weight on the central bank’s outlook and more attention on how the economic data unfold.
And an important point. No way I see them raising rates though…
“What we learned was they are still a ways from that,” said English, a professor at Yale School of Management. “If they just don’t make further progress on inflation, it will be right at some point to say, ‘We don’t know what direction rates are going to go.’ ”
Semi’s still a big concern, so far so good this morning.
Drop in rates doesn’t hurt though
Hopefully once this week is over and all of the data is out we can get a better sense of direction. Until then, be careful and keep your head on a swivel.
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