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Powell speaks in Jackson Hole — What to know in markets Friday

All eyes will be on Federal Reserve Chairman Jerome Powell Friday morning when he speaks at the Fed’s annual Jackson Hole Economic Policy Symposium.

Powell is scheduled to speak at 10 a.m. ET about the “Challenges of Monetary Policy.” Economists and investors have a wide range of expectations for Powell’s speech. “There’s a risk that, in his remarks at the Fed’s Jackson Hole Symposium Friday morning, Chair Jerome Powell will push back on market expectations for another 100bp+ of rate cuts by end-2020, but we are not holding our breath,” Capital Economics predicted in a note on Wednesday.

Several economists are expecting little from Powell. “We don't think that the Fed will provide much new information on either front. Jackson Hole is an academic conference and not the appropriate forum to announce a change in policy,” TD Securities wrote in a note Friday. “The Committee is also divided on the outlook for rates and the impact of weak global growth and trade uncertainty on the US remains uncertain.”

UBS economists agree. “Given the July decision, when the cut was only 25bps and Powell seemed unable to lead the FOMC to a bigger cut, the risk of any speech disappointing market expectations for dovishness is high.”

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Powell’s speech comes on the heels of the Federal Open Market Committee’s (FOMC) release of its July meeting minutes on Wednesday afternoon. The minutes revealed that most Fed officials viewed the July rate cut as a mid-cycle adjustment as opposed to the beginning of a long-term easing campaign. At the end of the most recent FOMC meeting, the committee cut interest rates for the first time in more than a decade, and markets are expecting more cuts ahead. With current risks weighing on the U.S. economy, Fed officials stressed the need for policy flexibility. Two FOMC members dissented from the Fed’s latest rate-cut decision and felt that no rate cut was needed at the time.

“We will hopefully get more clarity on future rate cuts when Powell speaks on Friday but, at this point, there is little sign that the Fed is willing to push back on the markets. As such, another 25bp cut in September still looks like a good bet, if only because the Fed will not want to disappoint lofty market expectations.”

Source: https://finance.yahoo.com/news/powell-speaks-in-jackson-hole-what-to-know-in-markets-friday-224536224.html

I hope today’s article has been helpful, be sure to let me know what you think.

The post Powell speaks in Jackson Hole — What to know in markets Friday appeared first on Trading Concepts, Inc..

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China’s currency is at its lowest level in a decade — and US exporters will pay the price

China's currency, the yuan, slipped to its lowest level in over a decade on Thursday, dropping 0.2% to 7.0749 to the dollar.

The dollar-pegged currency, also known as the renminbi, trades within a band set by China's government, and earlier this month the band was moved to fight back against President Donald Trump's newly announced tariffs. A weaker currency makes Chinese exports comparatively cheaper and more attractive, potentially lifting overseas demand and boosting China's economy.

In turn, the move could affect demand for US exporters, whose goods become comparatively more expensive in China.

The horse may have already bolted the stable, however, according to Mark Williams, a senior Asia economist at Capital Economics.

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"The renminbi's weakness will give a small boost to China's exporters, and help offset some of the impact of US tariffs," Williams said. "But we're beyond the point where exchange rate moves matter much for US producers exporting to China."

"China's demand for US goods has already collapsed," he added.

Chinese imports from the US have dropped significantly, falling 19% in July from a year earlier.

China exports

Hong Kong's Hang Seng stock index fell by 0.8% on the latest currency news.

China's move earlier this month to let its currency slip past the notable level of seven yuan to the dollar sent markets into meltdown. Stocks fell more than 2%, with the Chinese government blaming protectionist policies for its decision.

At the time, the government said it "has the experience, confidence, and capacity to keep the renminbi exchange rate fundamentally stable at a reasonable and balanced level."

Source: https://markets.businessinsider.com/news/stocks/china-yuan-renminbi-drops-to-lowest-level-in-decade-us-exporters-will-pay-2019-8-1028466020

Have a great day and hope this helps.

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Volatility Giving Neutral Reading Ahead of Fed News

U.S. markets were tentative on Thursday while trading on both sides of the ledger as Wall Street awaits Fed Chairman’s comments from the annual central banking symposium in Jackson Hole, Wyoming on Friday. An early session inverted yield curve caused some nervousness as algorithms triggered to create some selling pressure as the 10-year treasury yield briefly fell back below its 2-year counterpart.

The news and reaction wasn’t as dramatic as the prior inverted yield curve selloff from last week as the major indexes recovered to push higher highs before settling mixed. Volatility ticked higher but was able to hold key resistance levels while giving a neutral reading heading into Friday’s Fed update.

The Dow gained 0.2% after trading to an intraday high of 26,388. Near-term and lower resistance at 26,200-26,400 was cleared and held with more important barriers at 26,600 and the 50-day moving average.

The S&P 500 was down just over a point, or 0.1%, following the intraday fade to 2,904. Near-term and upper support at 2,900-2,875 held with backup help at 2,850-2,825.

The Russell 2000 dipped 0.3% after testing a first half low of 1,500. Current and upper support at 1,500-1,485 held by a third of a point with a close below the latter reopening risk towards 1,475-1,460.

The Nasdaq declined 0.4% following the back-test to 7,937 and close back below the 8,000 level. Current and upper support at 7,950-7,900 was breached but held with risk towards 7,850-7,800 on a close below the latter.

Financials advanced 0.7% to lead sector strength while Consumer Staples and Real Estate gained 0.5%. Materials were the weakest sector after falling 0.7% while Healthcare and Energy dropped 0.5%.

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ANALYST UPGRADES/DOWNGRADES

Fortis (FTS) downgraded to Neutral from Outperformer at CIBC
Hemispherx (HEB) downgraded to Hold from Buy at Maxim
Toll Brothers (TOL) downgraded to Market Perform from Outperform at Wells Fargo

Energizer (ENR) upgraded to Buy from Neutral at UBS with
Target (TGT) upgraded to Buy from Neutral at Citi
Wayfair (W) upgraded to Buy from Hold at Stifel

FRIDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: ​360 Finance (QFIN), Buckle (BKE), Corporación América Airports (CAAP), Foot Locker (FL), Hibbett Sports (HIBB), Red Robin Gourmet Burgers (RRGB), Sunlands Technology Group (STG), TigerLogic (TIGR)
After the close: ​​None

UPCOMING ECONOMIC NEWS
Friday’s economic reports (EST): 
New Home Sales - 10:00am
Baker-Hughes Rig Count - 1:00pm


METALS / OIL
Gold closed at $1,508.50 an ounce, down $7.20
Silver settled at $17.04 an ounce, down $0.12
Copper finished at $2.55 a pound, down $0.03 
​Crude Oil was at $55.40 a barrel, down $0.22
Bitcoin Investment Trust (GBTC) ended at $13.23, up $0.15

I hope this helps you prepare for the trading day. Make it a great one!


   Todd Mitchell

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The post Volatility Giving Neutral Reading Ahead of Fed News appeared first on Trading Concepts, Inc..

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Bank of America’s CEO has one simple reason why he doesn’t see a recession looming

Moynihan says the ‘U.S. consumer continues to spend and that will keep the U.S. economy in good shape.’

Bank of America Corp.’s CEO Brian Moynihan says he doesn’t see a recession in the offing because the U.S. consumer remains healthy.

‘But what’s going to make that happen is the underling U.S. consumer. And the underlying consumer is doing well and making more money, they're employed; and more importantly, they are spending more money.’ "

- Brian Moynihan, Bank of America CEO

The Wall Street chieftain’s comments, which aired on CNBC on Wednesday, come as investors have been fretting about the health of the U.S. economy with the Trump administration has been locked in a yearlong battle with China over trade policy.

The dispute, centered on import duties, has raised the chances that a recession could grip the domestic economy soon, elevating anxieties in financial markets. However, Moynihan said that a yield-curve inversion, which occurred briefly last Wednesday between the closely watched yields for the shorter-dated and longer-dated government bonds, doesn’t necessarily signify that a recession is imminent.

The U.S. 2-year Treasury note yield TMUBMUSD02Y, -0.79% briefly traded above the 10-year Treasury note yield TMUBMUSD10Y, -0.91% for the first time in over a decade (and it occurred briefly on Wednesday), a condition that has preceded the last seven recessions.

“Look, when the yield curve moved around the pundit-ocracy got going, saying, ‘Here, this means a recessions coming,’” Moynihan told CNBC.

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However, the bank boss said this time the recessionary gauge may be influenced by a global market swirling in some $15 trillion in negative interest rates.

“But if you actually think about it, there could be two reasons that the yield curve is moving around and you’re seeing that debate take hold,” he said.

“Which in part is the flight to quality. 80 - 90% of all the yield in the world is available in the United States. So, the money comes flying here because you’re gonna give your money to someone — a thousand dollars — and they give you back less in 10 years ? Or you’re gonna give your money to someone — a thousand dollars — and they give you back more in 10 years?. And so, that’s why there’s a great debate about that,” the Bank of America CEO said.

Moynihan said the debate about the U.S. economy’s trajectory comes down to the consumer.

“And so in our customer base through this time Aug. 15 year to date, you’ve seen the amount spent by American consumers at Bank of America: $2 trillion,” he said.

“It’s up 5.9% from last year through the same period of time. So, in [2017-18] you’re up about 8.5% and 2018-19 up 5.9%. So, think about that as $120 billion more spending by our consumers this year versus last year, which means the U.S. consumer continues to spend and that will keep the U.S. economy in good shape,” Moynihan explained.

According to the Bureau of Economic Analysis, consumer spending makes up 68% of the U.S. economic activity.

Moynihan’s sanguine view of the consumer also comes as the Dow Jones Industrial Average, the S&P 500 index and the Nasdaq Composite were enjoying a brisk run-up on Wednesday at least partly on the back of upbeat earnings from retailers Target Corp.  and Lowe’s Cos., viewed as a further indication of the health of consumers.

Source: https://www.marketwatch.com/story/bank-of-americas-ceo-has-one-simple-reason-why-he-doesnt-see-a-recession-looming-2019-08-21

Have a great day and hope this helps.

The post Bank of America’s CEO has one simple reason why he doesn’t see a recession looming appeared first on Trading Concepts, Inc..

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Fed sees tariffs as ‘persistent headwind’ to economic growth

Federal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battle, citing the issue multiple times during discussions at the central bank’s July meeting.

Members spoke about trade on multiple occasions, saying it was one of the chief headwinds for the economy, according to meeting minutes released Wednesday.

“Participants generally judged that the risks associated with trade uncertainty would remain a persistent headwind for the outlook, with a number of participants reporting that their business contacts were making decisions based on their view that uncertainties around trade were not likely to dissipate anytime soon,” the minutes said.

Tariffs and generally slower economic conditions combined “could have significant negative effects on the U.S. economy” while a softness in business investment was “pointing to the possibility of a more substantial slowing in economic growth than the staff projected.”

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The two sides have been locked in trade tensions amid a tit-for-tat tariff battle that shows no signs of letting up. The situation was one of three factors Fed officials cited in deciding to lower their benchmark interest rate by a quarter point at the July policy meeting.

Members “generally saw uncertainty surrounding trade policy and concerns about global growth continuing to weigh on business confidence and firms’ capital expenditure plans,” the minutes said.

Outside of the challenges from trade and the global slowdown, Fed officials saw economic growth as generally solid, with data that has been “largely positive” and an economy that “had been resilient in the face of ongoing global developments.”

The minutes noted that trade was impacting the manufacturing and agriculture industries.

President Donald Trump jarred markets the day after the Fed meeting when he said he would institute tariffs on all Chinese imports in September. He has since modified that directive, delaying duties on some of the more consumer-sensitive areas until December.

Source: https://www.cnbc.com/2019/08/21/fed-sees-tariffs-as-persistent-headwind-to-economic-growth.html

Have a fantastic day and I hope today’s article helps in your trading.

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Bulls Recover Prior Resistance on Soft Fed Speak

U.S. markets opened with strong gains on Wednesday following solid earnings numbers from the retail sector and better-than-expected economic news on home sales. The afternoon Fed minutes didn't provide strong clues on the direction of rates, and there was little market reaction afterwards as the major indexes maintained momentum.

The gains helped recover the prior session losses with near-term resistance levels being reclaimed. Volatility eased after closing below key levels of support but sandwiched between its 50-day and 200-day moving averages.

The Nasdaq jumped 0.9% after trading a midday peak of 8,036. Near-term and lower resistance at 8,000-8,050 was cleared and held with a close above the latter and the 50-day moving average getting 8,100-8,150 back in focus.

The S&P 500 added 0.8% following the late day trip to 2,928. Lower resistance at 2,925-2,950 was breached but held with a close above the latter and the 50-day moving average getting 2,975-3,000 in play.

The Dow rallied 0.9% after trading to an intraday high of 26,268. Near-term and lower resistance at 26,200-26,400 was cleared and held with additional hurdles at 26,600 and the 50-day moving average.

The Russell 2000 rose 0.8% following the second half run to 1,512. Prior and lower resistance at 1,515-1,525 and the 200-day moving average was challenged but held with a close above the latter getting 1,535-1,545 and the 50-day moving average back in play.

Consumer Discretionary and Technology soared 1.9% and 1.2%, respectively, to lead sector strength while Healthcare gained 0.7%. There was no sector weakness.

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ANALYST UPGRADES/DOWNGRADES

Expositions Events (EEX) upgraded to Buy from Neutral at Goldman Sachs
Public Storage (PSA) upgraded to Neutral from Underperform at Baird.
ServiceNow (NOW) upgraded to Buy from Hold at Stifel

Cree (CREE) downgraded to Market Perform from Outperform at JMP Securities
Jazz Pharmaceuticals (JAZZ) downgraded to Neutral from Overweight at Piper Jaffray
Synlogic (SYBX) downgraded to Sell from Buy at Citi and to Perform from Outperform at Oppenheimer

THURSDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: ​BJ’s Wholesale Club (BJ), Canadian Imperial Bank (CM), Dick’s Sporting Goods (DKS), Fly Leasing (FLY), Hormel Foods (HRL), LSI Industries (LYTS), StealthGas (GASS), Toro (TTC), Yunji (YJ)

After the close: ​Adtalem Global Education (ATGE), Gap (GPS), HP (HPQ), Intuit (INTU), Ross Stores (ROST), Salesforce (CRM), VMware (VMW)

UPCOMING ECONOMIC NEWS
Thursday’s economic reports (EST): 
Jobless Claims - 8:30am
PMI Composite Flash - 9:45am
Leading Indicators - 10:00am
Kansas City Fed Manufacturing Index - 11:00am


METALS / OIL
Gold closed at $1,515.70 an ounce, unchanged
Silver settled at $17.16 an ounce, up $0.01
Copper finished at $2.58 a pound, unchanged
Crude Oil was at $55.62 a barrel, down $0.51
Bitcoin Investment Trust (GBTC) ended at $13.08, down $0.42​

I hope this helps you prepare for the trading day. Make it a great one!


   Todd Mitchell

Not sure the best way to get started?
​
Follow these 3 simple steps ...
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Step #1: Get These FREE Reports & Videos

Options INCOME  Profits  |  8 Video  Series  |  7  Habits that Kill Traders...


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Premium Advisories | Featured  Educational  Programs 


Step #3: Connect with The Community
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The post Bulls Recover Prior Resistance on Soft Fed Speak appeared first on Trading Concepts, Inc..

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Dow snaps three-day winning streak

The Dow snapped a three-day winning streak and finished 173 points lower on Tuesday.

The drop follows a week and a half of turbulent trading. The Dow closed 0.7% lower, while the S&P 500 fell 0.8% and the Nasdaq Composite declined 0.7%.

With news about trade wars, recessions and economic stimulus abating for the time being, investors are now waiting for Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Friday to see if he can help boost the market again.

Investors will watch Powell's speech closely Friday morning for signs of further interest rate cuts and his assessment of the US economy.

Expectations for a September rate cut are at 100%, with a 95% chance for a quarter percentage point cut, according to the CME FedWatch tool. That's up from 90% at the start of the day. Although these high expectations suggest another rate cut is already priced in, stocks could rally if Powell sounds dovish on Friday.

President Donald Trump tweeted Monday that the Fed should cut rates by "at least" one percentage point. On Tuesday, Trump told reporters that the central bank needed to be proactive.

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Before Powell takes the stage, Fed Vice Chairman Randal Quarles will give a speech after the Tuesday market close. The minutes of the July Fed meeting, where the central bank cut rates by a quarter percentage point for the first time since 2008, come out on Wednesday.

With all this waiting in the wings, demand for safer assets will likely remain high.

The 10-year US Treasury yield once again fell Tuesday, reversing Monday's rally, and is sitting around 1.5%.

Elsewhere, China signaled further action to boost its economy, with Liu Guoquiang, the deputy governor of the People's Bank of China, saying there was room for rate cuts. Beijing's economic health is crucial for global growth.

European stocks, including the pan-European Stoxx 600 index, finished in the red amid more trouble in Italian politics. The prime minister of the eurozone's third largest economy, Giuseppe Conte, told the Italian Senate he would resign, threatening fresh elections and renewed uncertainty.

If Italy goes back to the polls, "a win by the center-right might prove more market friendly than the current government, but the prospect of a populist win would lead to a bumpy ride for Italian assets," said Matteo Ramenghi, chief investment officer for Italy at UBS Global Wealth Management.

Last year, troubles surrounding Italian politics and the country's financial health led to stock market woes across the world.

Source: https://www.cnn.com/2019/08/20/investing/dow-stock-market-today/index.html

Have a wonderful day and I hope this helps.

The post Dow snaps three-day winning streak appeared first on Trading Concepts, Inc..

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Recession not on horizon, Fed’s Daly says

San Francisco Fed president says interest-rate cut was not sparked by ‘impending downturn’

The U.S. economy isn’t headed for recession right now, San Francisco Fed President Mary Daly said Tuesday.

“When I look at the data coming in, I see solid domestic momentum that points to a continued economic expansion,” Daly said, in written answers to questions on the Quora website.

Daly said that there are “considerable headwinds” facing the economy and she was worried that they are contributing to a fear that a downturn is right around the corner.

“So one thing I’m looking closely at is whether the mood gets so out of sync with the data that the fear of recession becomes a self-fulfilling prophecy,” she added.

President Donald Trump confirmed Tuesday that the White House is mulling a payroll tax cut to give the economy a shot in the arm.

Daly said she supported the Fed’s interest-rate cut in July as “an appropriate recalibration of policy” in response to the headwinds facing the economy.

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She stressed her support for the rate cut was not based on her seeing “an impending downturn on the horizon.”

Daly has been president of the San Francisco Fed since last October . She is not a voting member of the Fed’s interest-rate committee this year.

Asked if the U.S. was “doomed” to low inflation, Daly replied no.

She said the Fed has tools it can use once it better understands what is driving low inflation.

Fed Chairman Jerome Powell is scheduled to discuss challenges facing monetary policy in a speech from Jackson Hole, Wyoming, on Friday.

Source: https://www.marketwatch.com/story/recession-not-on-horizon-feds-daly-says-2019-08-20?mod=mw_theo_homepage&mod=mw_theo_homepage

Have a wonderful day.

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Bears Return to Crack Near-term Support Levels

U.S. markets closed lower on Tuesday after struggling to hold slight gains during the first half of action. News that President Trump is anxious about the economy and is contemplating various actions aimed at bolstering confidence and growth failed to help momentum.

Specifically, the President said he was looking at payroll and capital gains cuts along with 100 basis point cuts (over time) in interest rates. The major indexes closed just below near-term support levels on the pullback with volatility settling just above key resistance levels.

The S&P 500 was down 0.8% after trading to an intraday low of 2,899. Near-term and upper support at 2,900-2,875 was breached but held by a half-point with backup held at 2,850-2,825.

The Nasdaq was lower by 0.7% following the back-test to 7,948 and closed back below the 8,000 level. Current and upper support at 7,950-7,900 failed to hold with risk towards 7,850-7,800 on a close below the latter.

The Dow declined 0.7% after trading in a 208-point range while testing a late day low of to 25,952. Major support at 26,000 was breached and failed to hold to reopen risk towards 25,800-25,600 and the 200-day moving average.

The Russell 2000 fell 0.7% after tapping a late day low of 1,497. Prior and upper support at 1,500-1,485 was tripped and failed to hold with a close below the latter reopening risk towards 1,475-1,460.

Consumer Discretionary edged up 0.03% and was the only sector that showed strength. Financials and Materials paced sector laggards after sinking 1.4% and 1.2% while Consumer Staples and Energy dropped 1.1% and 0.9%, respectively.

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ANALYST UPGRADES/DOWNGRADES

AbbVie (ABBV) upgraded to Overweight from Neutral at Piper Jaffray
Beyond Meat (BYND) upgraded to Overweight from Neutral at JPMorgan
Pilgrim's Pride (PPC) upgraded to Outperform from Market Perform at BMO Capital

BP Midstream (BPMP) downgraded to Neutral from Overweight at JPMorgan
HP (HPQ) downgraded to Neutral from Buy at Citi
Las Vegas Sands (LVS) downgraded to Hold from Buy at Argus

WEDNESDAY'S EARNINGS ANNOUNCEMENTS  
Before the open: Analog Devices (ADI), Children’s Place (PLCE), Jumia Technologies (JMIA), KLX Energy Services (KLXE), Lowe’s Companies (LOW), Pinduoduo (PDD), Royal Bank of Canada (RY), Sharps Compliance (SMED), Target (TGT), Viomi Technologies (VIOT)

After the close: ​Chemical & Mining (SQM), Huazhu Group (HTHT), Keysight Technologies (KEYS), L Brands (LB), Nordstrom (JWN), Pure Storage (PSTG), Splunk (SPLK), Synopsys (SNPS), Zayo Group (ZAYO)

UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST): 
MBA Mortgage Applications - 7:00am
Existing Home Sales - 10:00am
FOMC Minutes - 2:00pm


METALS / OIL
Gold closed at $1,515.70 an ounce, up $1.10
Silver settled at $17.15 an ounce, up $0.21​
Copper finished at $2.58 a pound, down $0.02
Crude Oil was at $56.13 a barrel, down $0.10
Bitcoin Investment Trust (GBTC) ended at $13.50, down $0.24​

I hope this helps you prepare for the trading day. Make it a great one!


   Todd Mitchell

Not sure the best way to get started?
​
Follow these 3 simple steps ...
​

Step #1: Get These FREE Reports & Videos

Options INCOME  Profits  |  8 Video  Series  |  7  Habits that Kill Traders...


Step #2: Enroll in an Advisory or Educational Program
Premium Advisories | Featured  Educational  Programs 


Step #3: Connect with The Community
Trading Concepts Official Facebook Page

The post Bears Return to Crack Near-term Support Levels appeared first on Trading Concepts, Inc..

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How the Fed ‘could trigger carnage in the bond and equity markets’ this week

The one bright spot in the economy, the strength of the U.S. consumer, could throw a wrench in the Fed’s messaging this week, as central bankers gear up for an annual policy conference in Jackson Hole, Wyoming.

“There is a risk [Fed Chair Jerome] Powell and his colleagues end up disappointing the bond market next week – by not signaling clearly enough that additional rate cuts are coming in mid-September and beyond,” Paul Ashworth, chief U.S. Economist at Capital Economics, wrote in a note to clients. “That could trigger carnage in the bond and equity markets.”

Just last Thursday, July retail sales were released, a key data point on consumer health. Retail sales rose 0.7% month-over-month, topping Wall Street’s estimates of 0.3%. A strong consumer may fuel the Fed to delay future rate cuts.

“While the incoming global data have been weak, the latest round of U.S. data would not seem to warrant another rate cut so soon; not with core inflation rebounding and the U.S. consumer seemingly hell-bent on single-handedly saving the world economy,” Ashworth wrote.

Powell is set to speak at Jackson Hole on Friday, almost a month after his tumultuous press conference on July 31. Even though Powell cut interest rates, which market participants had expected, he sent mixed messages, leaving investors wondering if the cut was “one and done” or the start of a more substantial easing cycle.

Since then, trade tensions between the U.S. and China have arguably worsened and the yield curve inverted, which historically has preceded a recession. Investors are looking to the Fed to cut interest rates to help “un-invert” the yield curve.

Meanwhile, Jackson Hole commentary this week isn’t the only Fed checkpoint this week: the minutes of the Fed’s July meeting are released Wednesday.

“[The minutes] could also be a big market mover if they show officials were resistant to multiple rate cuts,” Ashworth added.

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Federal Reserve messaging uncertainty

While Ashworth highlights the market risk of a more hawkish-than-expected tilt in the Fed’s messaging this week, he acknowledges the uncertainty in forecasting the Fed’s messaging because, “Fed communication has become woefully bad.”

“The collective inexperience on the FOMC has begun to show – with the Fed pushing ahead with a rate hike last December amid a full-blown equity market collapse and then reversing it with the stock market close to a record high,” he wrote. “It’s also possible that Powell will simply drop all talk of a mid-cycle adjustment next week and bow to the market’s wishes.”

Source: https://finance.yahoo.com/news/how-the-fed-could-trigger-carnage-in-the-bond-and-equity-markets-this-week-135158930.html

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