Hints and tips:
...Mortier’s alarm comes as warnings over budget deficits have multiplied in recent weeks, including from Federal Reserve chair Jay Powell who on Sunday offered a rare opinion on government policy when he told...
...Powell said this US “exceptionalism” in the face of weaker global growth meant the central bank could afford to take its time....
...He’s not going to be able to do anything,” Trump said, referring to Powell....
...A blowout quarter was poised to end with a whimper on Thursday as investors chose to hold off bets ahead of fresh inflation figures and comments from Fed chair Jay Powell....
...Trading was cautious ahead of Friday’s bank holiday, which will still see the publication of February’s personal consumption expenditure report while Fed chair Jay Powell is due to speak at an event in San...
...UBS’s base case is still for two cuts this year, because of Powell’s comments....
...jennifer.hughes@ft.com...
...The S&P 500 stood almost 1.4 per cent higher as Powell spoke, on track for its biggest jump in a month, having been flat before the Fed’s initial announcement....
...“Chair Powell did not offer much pushback to expectations that rate cuts are the next move on the agenda,” analysts at Action Economics said....
...Additional reporting by Jennifer Hughes in New York...
...“A few weeks ago, Powell said policy is restrictive but (on Friday he added that) he believes policy is ‘well into restrictive territory’....
...Friday’s data continued a rate cut rethink triggered earlier in the week after Fed chair Jay Powell warned investors not to see imminent rate cuts as his “base case” scenario....
...Jeffrey Roach, chief economist for LPL Financial, described Powell as “inching toward the dovish camp.”...
...“Powell not only refilled the punchbowl this week, he spiked it. No one wants to be Scrooge or the Grinch just now,” said Steve Sosnick, chief market strategist at Interactive Brokers....
...There was that line from Fed chair Jay Powell earlier this year about navigating by the stars under a cloudy sky. Well, we’re still doing that. I mean, I’ve heard interest rates forecast for next year....
...Powell emphasised the Fed was “proceeding carefully” with future rate rises, which investors took as a sign bond markets have largely succeeded in slowing down the US economy....
...Shepherdson argues that declining S&L tax revenue augurs poorly for future S&L spending, as this chart shows: It’s a reminder to investors that markets are sensitive to changes, not levels....
...“Perhaps Powell talks the market down after the Fed meeting.” The central bank’s last meeting for 2023 concludes on December 13....
...The unexpectedly dovish stance from Fed chair Jay Powell boosted markets on Thursday morning, with both stocks and government bonds surging on the hopes of global rate cuts....
...Email me: jennifer.hughes@ft.com. Unhedged is going on break for Labor Day. We’ll be back on Tuesday....
...The bond market had previously strengthened this week on the back of comments by Fed chief Jay Powell that the central bank was “proceeding carefully” with future rate rises....
...Investors this week are waiting for a speech on Friday by Fed chair Jay Powell at the annual Jackson Hole economic symposium....
International Edition