Powell storm in a tea cup – Part two
|S&P 500 surged on good data yesterday, and duly so – yet today premarket we‘re getting Waller doing a breakdown of job market in support of his case for a rate cut – the Wednesday‘s saga continues, with predictable reactions in equities (down), USD (down), yields (up), precious metals up (gold as the monetary metal getting more love). While easy money isn‘t immediately (in macroeconomic terms) bearish equity prices (first, the effect of inflation is good – only in the latter stages overone pays and no one benefits), the kneejerk reaction focus is on credibility and unprecedented nature of the move (guess who just made a case for becoming the new Fed Chair?), and that takes a little patience to recover. Trump is determined, so this is more than a storm in a tea cup.
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