Chairman Jerome Powell of the Federal Reserve as part of a 2 day meeting in Jackson Hole, Wyoming, addressed the public at 7AM PST this morning. Futures dropping as he began his speech. Stock losses accelerate, Dow down 200 points. Definitely a continued hawkish stance on Powell’s part. His comments below:
Some pain ahead. Deliver price stability is unconditional. Likely some softening in labor market conditions. Economy clearly slowing. Still sees strong economic momentum. Labor market clearly out of balance. High inflation has continued to spread. Still need more evidence of lessening inflation. Price stability is Fed’s responsibility. Price stability will take some time. We must keep at it until the job is done. Another unusually large rate hike may be appropriate. Decision will depend on incoming data.
Depending on the data perhaps but the tone points to a .75% hike in September. No number was stated in his speech. I suppose we will see on September 13th.
