Fed Chair Jerome Powell speaks at an event at the Cato Institute themed “The State of Monetary Policy following 40 Years”. In Jackson Hole hatte Jerome Powell with his speech (26.08.) made it clear that the Fed will do whatever it takes to fight inflation – even at the expense of a recession. As a result, the stock markets came under pressure. Will Powell qualify his message today, citing the weakness of the economy in Europe and China?
– Powell: must react strongly to inflation
– let and not be influenced by political considerations
– Powell talks a lot regarding inflation expectations, no indication Fed won’t hike 0.75% in September – Fed fund futures are now pricing in 85% probability of a 0.75 hike (down from 80%)
– Powell: we need to keep going until we get the job done on inflation
– Labor market extremely strong
– we have to balance growth with trends and the labor market
– Powell: “History cautions strongly once morest prematurely loosening policy” – repeating the Jackson Hole Matra (which does not excite the stock markets..)
Powell Says Covid Pandemic Led to Surging Inflation
not the $4 trillion the Fed printed, it was the virus.
— zerohedge (@zerohedge) September 8, 2022
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