The market is falling t0 the lows following Fed Chief Jay Powell’s remarks at Jackson Hole. Powell’s message was clear this morning. Pain for households and businesses are the price that must be paid to bring down inflation, but Powell stated that “a failure to restore price stability would mean far greater pain.”
Powell was hawkish, as inflation remains his top priority. This was a different tone from July when he dropped pieces of hope for the bulls. Regardless, markets faded minutes after his speech ended.
The Fed Fund futures now is pricing in a 56.6% chance of a 75bps hike in September.
All eleven sectors of the S&P 500 are lower with Technology the worst performer. Utilities are faring the best, but still down on the day.
On the economic front, Consumer Sentiment surprisingly bounced in the final August reading. The Index rose to 58.2 vs. 54.9 preliminary. 1-year inflation expectations fell to 4.8% from 5%, and the 5-10 year expectations fell to 2.9% from 3%.
Have a great weekend.
|The Fed's approach to inflation is a clear example of the intended desire to bring down the middle class. A disection and examination of the major cause of inflation is the murdering of the oil industry. Open the spickets of oil once again and watch inflation disappear. Oil is the economic strength of prosperity in our nation. No oil equals high oil prices. High oil and gas prices equal higher costs for everything especially transportation and everything has to be transported. Eliminate the Fed as John Kennedy wanted to do and watch booms and busts disappear.|
Bill Baumner on 8/26/2022 1:56:52 PM
Robert Mccarthy on 8/26/2022 11:15:30 PM
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