In a rush? Here’s the key takeaway
- What will Powell say in his speech at jackson Hole? Will he be dovish, hawkish, walk the middle line that satisfies no-one, or promise to do whatever it takes to extend the US economic expansion for as longt as possible? Whatever he says he is going to move markets, perhaps materially.
- And his message has been further complicated by three Fed speakers, including Robert Kaplan, suggesting there is no desire for another cut right away. The Fed might just be serious about one mid-cycle adjustment. And maybe larry Kudlow has read Powell’s speech cause he’s out there talking up the trade talks, tax cuts, and rate cuts – right now, as I write.
- To the markets then and Europe drifted as hopes of german stimulus faded a little, US stocks were cautious with the S&P 500 off just 0.05% to 2922, major forex wasn’t moved much but Aussie, Kiwi, and copper lower suggest caution on the outlook. Gold and silver drifted too and US 10’s are at 1.61%!!
Now, let’s dive in to this morning’s newsletter.
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