How will global investors react to the overriding message from the Central Bankers Lovin-in at Jackson Hole? Aussie markets were 2% down on Monday morning.
Federal Reserve Chair Jerome Powell’s stern message was that interest rates are going higher for longer in a painful fight against inflation. Be clear, he quashed thoughts that the trajectory of monetary tightening could soon be tempered.
Investors now see the Fed’s policy rate peaking in March at around 3.80% and pared bets on a decline in 2023. The US yield curve between the five and 30-year maturities inverted for the second time this month, while the gap between the higher two-year yield and the 10-year rate widened.
The inversions suggest the bond market anticipates a recession is the necessary sacrifice to get price pressures back under control. Though I note already, some bank economists are saying, this is all talk, because the bond market hardly reacted.
Expect to hear more on the trade-off between higher rates of inflation and higher unemployment, and whether the 2-3% targeting which has become a cornerstone of Central Bank doctrine is relevant.
Meantime, other than commodities, and the USD, there is nowhere to hide – and Bitcoin came down in sympathy.
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Caveat Emptor! Note: this is NOT financial or property advice!!
……..and the Democrat Deep State entertains their Globalist/New World Order friends and allies in 'downtown America' to discuss how to deal the final death blow to the US and the 'old' world order……and 330 million heavily armed Americans stand around scratching their heads without a shot being fired……Only in America.
Thanks for sharing
Let nature take its course!
Powell has turned the idea that if inflation goes flat or slightly down interest rates will follow. Therefore markets and housing have at least 6 months of high and higher interest rates and very little to feel positive about. Many countries are probably going to get peak inflation of around 10% and thats not going to be a 5 minute job getting back to 2% . And powell is saying he’s staying pedal down to 2% . And every other central bank will follow suit.
BUT REMEMBER THIS. In nz the national party will be in next year so all will be ok.
And that terrible Jacinda ardern will be out that f…ked the world
Humans are getting greedy and immoral. The biblical end time is coming!
Lets see if the DXY gets to 120 causing mayhem!
Hey Martin, I have a question. When you say, "the biggest banks have begun winding down the balance sheets", what does that mean?
Many don’t understand how unemployment at around 5% also plays a key part in keeping inflation down. Job losses will be on the cards soon
Commendable commentary Mr. North.
I can't help but think if the central banks were going to try and tackle inflation they would had done it by now. .5 / .75 increases won't do anything.
Time to make pork barrel jawbone soup. Not correcting the corporate fascism is terminal.
Speech at Jackson Hole looked like a gambling addict explaining life story seeking sympathy.
Jerome Powell…a Catholic Jesuit head of the Fed….haha….no wonder they are supporting fake 'ukraibe' which is essentially Russia..they dont have control over those lands nor Orthodox Christian church, thus they are trying to indoctrinate everyone quickly with their bs narrative
Thank you Martin
From your mouth into God's ears Martin.
The Australian dollar is much too high but the people will wake up !!.
The PLANDEMIC !!.
Central Bank targets of any more than 0% inflation is nothing more than taxation at best, theft in reality.
Argh so it has nothing to do with the doubling of the m2 money supply. Thank gosh.
When I look at the charts (today) then I think the FED will / could raise interest rates one more time. Because I still think rates are going to go lower in the coming weeks.
Why is everyone so "gung ho" on rising productivity ? Aren't the people aware that increased productivity actually REDUCES DEMAND ==>> DEFLATION !!!!!
A worrying sign is that the silver-gold ratio keeps falling.
Another .75 in September.
Thank you Martin. I have been watching gold fall since Jackson Hole. Good learning opportunity. And I got out of the market this morning. I appreciate your time and effort.
Bit windy ? LOL
Martin I'd love to know your thoughts on the Northern Hemisphere's coming winter. I know that Europe is starting to fire up coal again to try to get through. Do you think Aussie coal miners might be a hedge this winter? Or stay right out?
this will get rid of the lower classes at last
The fallout hasn't been great here in Australia, yet.