Markets SINK In Reaction to Jay Powell Speech

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So Jay Powell and the Fed tell Donald Trump to take a long walk off a short pier. yeah, yeah. Powell gave a speech to the economic club of Chicago yesterday and yeah, tariffs are likely to generate at least a temporary rise in inflation. And again, he.

Uncertain like the rest of us of the effects, how long it takes for them to pass fully into prices, keeping longer term inflation expectations well anchored. What else did he say? Our obligation is to keep longer term inflation expectations well anchored and to make certain that a one time increase in the price level does not become an ongoing inflation problem. He also braised the idea that

to stagflation could be possible. We may find ourselves in the challenging scenario in which our dual mandate goals are in tension. Again, the Fed getting pulled in both directions, okay, in regards to inflation and also in regards to full employment and the economy. He said, if that were to occur, we would consider how far the economy is from each goal and the potentially different time horizons over which those respective gaps

would be anticipated to close. Yeah, he says we’re gonna wait. You know, Wall Street was thinking, hey, you know, maybe June. You know, June might be the time where the Fed is gonna start lowering rates.

How? As of right now, you’ve got this 90 day pause there on tariffs. Supposedly we are what we really don’t know. We don’t know really anything. If that’s still on, how is he going to lower rates in June if he doesn’t know what’s going to happen if that tariff thing is going to come off in July? And the markets didn’t like it. No, no, no, they were not happy at.

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all about this and we had a well an exacerbated sell-off after he spoke. I don’t know if Trump is going to come out with a tweet he did a week or so ago telling the Fed to stop playing politics and to lower rates. Fed can lower rates again the bond market is going to do what the bond market is going to do.

just that simple and I think Jay Powell knows that. Trump, you know, some say, well, Trump gonna get rid of the Fed. Yeah, you really wanna throw, you wanna make the markets even messier? You wanna screw with things to an even greater degree? Start pulling that crap and see how that works out for you. It’s like the Fed has some sort of magic button. Here we come to save the day, like Mighty Mouse.

going to be able to do it. They’ve been put in a precarious position at this point in time, quite in my opinion, like you said here, completely nonsensical position, thanks to Donald Trump. And that’s where we’re at. That’s where we’re at. And again, that was Wednesday. My Lord, merciful, who knows what in God’s creation is going to happen on Thursday.

Yeah, Confucius said, you live in interesting times. I don’t think he was talking about this. Watchdog on wallstreet.com.