On a day when producer prices confirmed what consumer prices warned yesterday – that the inflation genie is not back in the bottle – Fed Chair Jay Powell will be interviewed by WaPo reporter Catherine Powell at the Dallas Fed, presumably to reassure the world that he is ‘independent’, is not about to be fired by Trump, and that everything is awesome on the rate-cutting path.
Traders should expect Powell to reiterate the points he made at the FOMC press conference last week when he refused to provide specific guidance regarding the December meeting, stressed data-dependency and noted the Fed does not want to see further cooling in the labor market.
While hope remains high for the ‘soft landing’ narrative, today we see inflation resurgent at the same as jobless claims hit six-month lows…
Does that look like ‘data’ that would prompt The Fed to cut again in December?
Or will Powell be Burns 2.0?
Interestingly, minutes before Powell is set to speak, JPMorgan CEO Jamie Dimon dropped some tape-bombs of reality:
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*DIMON: THINK THE CHANCE OF SOFT LANDING LESS THAN OTHERS THINK
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*DIMON: “NOT SO OPTIMISTIC” THAT INFLATION WILL GO AWAY QUICKLY
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*DIMON: GROWTH IS BEST POLICY TO FIX DEFICIT PROBLEM
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*DIMON: TRUMP INHERITING INFLATION THAT MAY NOT GO AWAY QUICKLY
Watch live (due to start at 1500ET)
Tyler Durden
Thu, 11/14/2024 – 14:45
