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Jennifer Faith
@faithinmarkets
‼️ Breaking News. Powell’s Press Conference regarding the 75 basis point rate hike just ended. Here’s the jist… ➡️Labor demand is very strong On goal to get to 2%, it’s essential ➡️Pace of rate hikes to depend on incoming data ➡️Another unusually large increase to depend on data ➡️Likely appropriate to slow increases at some point ➡️Below trend growth may be necessary to lower inflation ➡️Wouldn’t hesitate to do larger move if needed ➡️We’re right in the range of what we think is neutral ➡️Will continue to use tools ⚒️ to align supply and demand ➡️Core inflation remains a better indicator of headline ➡️Likely economy hasn’t felt full effects of inflation ➡️Significant additional tightening in pipeline ➡️He thinks it’s time to go to meeting by meeting for basis points ➡️Fed to offer less clear guidance on rate moves ➡️Take estimates for rates next year ‘with a grain of salt’ 🧂 💚Nasdaq 100 extends gains ➡️It’s necessary to have growth slow down. ➡️Sustained supply shocks can de-anchor price expectations ➡️FOMC has tools 🛠 to restore price stability ➡️ Softening labor-market conditions will be necessary ➡️ Price stability is the bed rock of the economy ➡️We see the path to easing inflation ➡️Not trying to have a recession ➡️Trying not to make a mistake ➡️Does not think the US 🇺🇸 is currently in a recession ➡️Risk of doing too little makes pain that much greater ➡️ Conflict of interest rules “toughest in place” regarding trading. ➡️Have created strong rules to support public trust. ➡️Haven’t yet made the decision on point when to slow rates ➡️Haven’t made September decision at all ➡️PCE gauge is better at capturing inflation ➡️June dot-plot projections best guide on FOMC rate path ➡️Seeing 👀 a slowing in demand in Housing for Q2 ➡️Think demand is moderating ➡️Labor market showing modestly slower job creation ➡️Labor supply, not so much. We had another round of Covid. Only the beginning of an adjustment in the labor market. It will adjust. ➡️Again, we are not in a recession. The labor market is still strong ➡️Goal 🥅 is a soft landing. Not easy, very unusual events have taken place. There is a path to get there. ➡️💚✅The US Economy still on track to continue to grow this year.💚✅ ➡️ Model suggests balance sheet plan equilibrium to take 2 to 2 1/2 years ➡️Markets have confidence in FOMC’s inflation commitment ➡️Breakevens coming down is a good thing ➡️Wants to see demand moderate, price pressure recede ➡️When inflation changed direction in October, we moved quick. ➡️Labor market sends strength signal ➡️Powell’s own instinct is natural rate of unemployment is higher ➡️ The soft landing has gotten more challenging in recent months ➡️ We are commited to bringing inflation down. It is too high, painful for those living paycheck to paycheck. Seeing drops in food consumption is very concerning. #pressconference #breakingnews #inflation #fed #powell #bloomberg #bigdippers #pennypinchers #gainsgirls #stockhoardersanonymous #generationalwealth #jensnotes #jennotes #faithinmarkets Source: Bloomberg TV
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