Referral program
Notes from the Powell Press Conference

Very little that’s new and of interest from Powell’s press conference. The highlights:

– Talked about starting to taper quantitative tightening (QT). Said the plan is to get to the same level, but more slowly.

– Lots of talk about the strong employment situation. Regular DKI readers know most new jobs are in government. The jobs are being created by government and funded by inflation-causing spending. This is the economics version of a circular reference in the model.

– Almost every questions is some version of “when will you cut rates” with Powell trying to give the same answer without sounding annoyed.

– Powell’s language in the presser was similar to the written release where there was intentional ambiguity preserving the option to pursue a variety of future policy plans.

– Gold and Bitcoin traded up during the press conference indicating a lot of people think the Fed will blink and move the 2% target.

 

GB@DeepKnowledgeInvesting.com if you have any questions.

 

Information contained in this report is believed by Deep Knowledge Investing (“DKI”) to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied and DKI makes no representation as to the completeness, timeliness or accuracy of the information contained therein or with regard to the results to be obtained from its use.  The provision of the information contained in the Services shall not be deemed to obligate DKI to provide updated or similar information in the future except to the extent it may be required to do so. 

 

The information we provide is publicly available; our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion are precisely that and are subject to change. DKI, affiliates of DKI or its principal or others associated with DKI may have, take or sell positions in securities of companies about which we write. 

 

Our opinions are not advice that investment in a company’s securities is suitable for any particular investor. Each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose. 

 

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