It was cute to watch Chairman Powell speak at a luxurious resort at Jackson Hole, on the edge of the old Frontier.
To his credit, he addressed the root causes of inflation - spending and monetization… but then he laughed off the notion that they got the “transitory” part wrong. It’s easy for those in power, holding forth from chi-chi mountain resorts, to set aside the significant impacts of their policies on the average Joe.
But Powell is the Chairman of the Federal Reserve - his confidence that inflation is now very clearly on the “2% trajectory” should be taken seriously… right? Of course his discussion of imminent rate cuts has a strong foundation… right?
The reality is likely very different. In my view, the thing that really changed after Jackson Hole is the script that stocks, oil, and commodities are reading from. The script has flipped, alright, and the markets’ strengths and weaknesses showed that today.
Here’s what I mean…
1 Comment
Ken Hepp
August 27, 2024Brandon, that was a great analysis, 5 stars. I wonder what they are going to do when they get the renewed inflation statistics coming out down the road. They can run but they can't hide. By then it should be election time. Trump stated he would change the head of the Federal Reserve.
God help us if Kamala gets to be president in this mess, let alone negotiate peace in a world nuclear war which will happen with NATO and the USA against China and Russia at the same time.
We will all have to move to Don K.'s island.