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.
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