In today’s market review we are going to focus on Fed Chair Jerome Powell speech at Jackson Hole, just 9 minutes in length but enough to move the markets down significantly. For the Fed’s monetary policies to have any effect, markets must transmit them via the financial conditions to the actual economy. And the Fed needs to make sure this happens. And today was an effort by Powell to get this job done.
The speech was one of the strongest ever by the Fed chief, reflecting the onerous burden borne by the central bank in curbing inflation retreating ever so slowly from four-decade highs.
First Powell said inflation needed to be controlled. That was their main mandate.
Next he signalled there will be more rate hikes in the months ahead, taking the cash rate well above the neutral rate – meaning that they intend to deliberately slow the economy.
And he acknowledged this will hurt households and businesses.
And acknowledge that the current labour market was out of wack.
So, this message cut directly across the ranks of those saying the FED will pivot – arguing the FED has really been signalling that it would soon “pause” the rate hikes or “pivot” to rate cuts, even though the Fed had raised its policy rates four times this year, including twice by 75 basis points, the biggest rate hikes in years.
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Caveat Emptor! Note: this is NOT financial or property advice!!
Podcast edition: https://episodes.castos.com/dfa/df5edc28-127b-4e0b-b516-8986cf989109-SHGN7-S001-S001-T016-ISO1-6.mp3
Watching Powell made me feel very somber.
Powell “some pain”
Truth “the world is going to burn”
And gold and silver still far below fair value. Markets are rigged.
In a globalised environment, increasing interest rates seems pointless.
Micheal Burry might be right again! lol
THE CRASH WE NEEEEED TO HAVE!
Martin is Catholic….he always supports the narrative against Orthodox Russia and its lands….the Vatican Bank is financing the mercenaries causing trouble there, creating false history and as though some seperate country has existed there, thats why the Western news has promoted 'ukraine' so much, to indoctriniate people as though this is some seperate nation and people, when in fact they are just Russians….the Vatican and EU wants to steal, exploit, and control the land.
So much misinformation…..people just absorb this without knowing the truth and repeat it throughout the day and comment.
Finally someone in the drivers seat, be it a long time coming (but imagine all the other groups pressure not to), finally facing up to the facts and telling how it is, and how’s it gonna be.
Maybe an end coming to all these wanker YouTubers, the paul brothers…people who give money away (mr beast), the kardashians…all the most symbolic of east stupid money.
Elon musk and his businesses with his self interested control over other peoples money
Suckerberg and his creepy platforms
All of em will hopefully go away with less east money being directed to all their frivolous enterprises
With hopefully America pop culture being reduced maybe Australia’s can start growing its own again…based on their own realistic capabilities
Maybe even someone here can take responsibility for the current situation where “we can’t afford to house our own children”
Amazing how these shows bring out the financial experts in the comments section, if they're anything like Martin in forecasting the housing or stock markets future then we're all still in the dark as to what will actually happen
Cotkrrect…all these “experts” been playing in a pool where water (money) been overflowing no matter how much they jump about, no matter how many bombs they do splashing water to the outer.
No skill, no knowledge, no foresight…no proper measures being applicable.
All they have is the runs on the board thanks to east money being re-engineered, the velocity of digital currency, not velocity of hard printed currency racing through the economy…but the velocity of computer digits racing through the internet.
Hard to argue with experts when so much of that money goes flowing through to the bold and the brave, or really in this instance the ignorant and arrogant.
But again, when these idiots have been building stuff no one really needs but have purchased with east credit/money….they got runs on the board and a seat at the table of MSM.
All the while Greenspan, benanke, Yellen, for australia debelle and Lowe been happy to keep the party going and take credit for this non stop party….it’s hard to dispute. If you do, then you are a broken clock…right at least twice a day. Rather than someone who clearly identifies the fallibility of the humans spirit.
This is pretty funny. That poor dead cat.
Meaning we LL follow suit. Happy Birthday ….
What concerns me is wondering what the US government will do to serve as a distraction from all this.
Immigration go Brrrrrrr!
Powell translation = My Friends, Governors and family have cashed out.
How can we Prepare ? We can't
I'm just a dummie, but if the Fed can do nothing about government policy then how can they honestly say they are at war with inflation when input costs to producers are the driver of higher prices, minimum wage limits anti oil agenda, stimulus money printing, are BIDEN ADMIN policies that help drive inflation, if the US went full boar on oil production, stopped counterfeiting currency, that should do more to reduce inflation than any pivot that the Fed can come up with.
Way to go!
No gain without pain.
When a ruling class guy like this says "some pain", translates as..OoouuucccHhh!!
The true mandate of the FED is to engineer boom-bust cycles to facilitate wealth transfer events.
Some pain for households, SOME you are not kidding. A bit late… rates should have been rising when houses were going up 5000 dollars nearly every week, or when I saw whole streets getting built at one time.
September crash for the USA or Australia?
The Aussie All Ords was 6800 in Noc 2007. Today, 15 years later, it's 7300 or so. Nominal GDP is double!
On the other hand the DOW was 14,000 or so in 2007. Today about 33,000.
Quite a difference.