Federal Reserve Chairman Warsh delivered a notably hawkish speech at this year's Jackson Hole Economic Symposium, and it has real implications for where interest rates go next. Hear what he said about inflation, the labor market, and why the Fed isn't backing off even after a few better-than-expected readings this summer.
Inflation has stayed above the Fed's 2% target for more than five years, and Warsh made clear that "better than expected" doesn't mean "good enough." With more than half of the PCE basket still growing above 3%, and financial conditions loose rather than restrictive, the case for a rate hike is back on the table. Here's what it means for markets heading into a historically volatile September.
In this episode, Megan covers:
- Why Chairman Warsh's Jackson Hole speech came across as more hawkish than expected - The Fed's shift in focus from labor market stability to persistent price pressures - Why more than half the PCE inflation basket is still running above 3% - What "price stability is not self-executing" means for future Fed action - How markets reacted across the yield curve and in equities - Why September could bring more volatility as the market digests this speech
If you're trying to make sense of what a hawkish Fed means for your money heading into the fall, this one's for you.
For a history of all Markets with Megan episodes, visit: https://marketswithmegan.fm
Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the c...
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