Mid-week, Jerome Powell current Federal Open Market Chief (FOMC) hinted that rate movement may be under review – this, the exact sentence is what Capital Market Participants applauded:
“…we will act as appropriate to sustain the expansion.”
As simple as it may sound, it’s meaning is strong. Simply put, the FOMC is aware of headwinds being caused by the tariff talks and are considering it as a factor in their estimate of the growth of the economy. Here is a link to the actual speech for those nerds like us!
Rewind to just two quarters ago when the FOMC was on record saying they planned on raising rates three more times, spurring the Holiday season Hissy Fit … Things certainly have changed –
This headline from Wall Street Journal Yesterday
But HOLD ON … this will make you scratch your head–
Robert Kaplan, Dallas Federal Reserve President – One and a half weeks ago during a lunch presentation! Take a moment to listen, it’s 1 minute and 14 seconds!
Different Audio types for differing browsers – same audio
Timely recording of the event…had no idea how pertinent it would be so quickly!
Feeling a bit like a reporter…. confused reporter, but reporter!!!
Have a Great Friday and Super Weekend!
John A. Kvale CFA, CFP