Can Powell Tame Inflation and Keep the Market Happy?

The Federal Reserve is losing control over the inflation narrative

Jim Caron, head of macro strategies for global fixed income at Morgan Stanley Investment Management, warns of potential volatility in the market due to potential misinterpretations of Powell’s comments. Investors will be closely monitoring Powell’s outlook on the economy, with economists forecasting a potential recession and the Fed projecting slow growth and a rise in … Read more

Will Easy Credit and Rising Stocks Hinder the Fed’s Inflation Fight?

inflation on the rise

Could Overly Easy Credit and a Soaring Stock Market Threaten the Fed’s Fight Against Inflation? As the Federal Reserve kicks off its two-day meeting, stocks continue to rally, with the S&P 500 ending January with a gain of 6.2%. The tech sector performed even better, with a 9.2% increase in the same period. Meanwhile, interest … Read more

Stock futures tick higher a day after market sell-off from Fed rate hike

Stock futures tick higher a day after market sell-off from Fed rate hike

U.S. stock futures were slightly higher on Thursday morning following a big decline in the major averages as traders weighed another large rate hike from the Federal Reserve. Dow Jones Industrial Average futures rose 110 points, or 0.36%. S&P 500 futures added 0.27% and Nasdaq 100 futures inched 0.1% higher. Stocks closed lower on Wednesday, … Read more

Bitcoin Keeps Falling. Where It Could Stop and Why the Fed Isn’t Helping.

Bitcoin Falls After breaking through $25K barrier

BitcoinBTCUSD +1.09%  and other cryptocurrencies slipped Wednesday as risk sentiment faltered across markets in the lead-up to the latest monetary policy decision from the Federal Reserve. The price of Bitcoin has fallen 0.3% over the past 24 hours to $19,177. ​​The largest crypto remains firmly outside the $20,000 to $25,000 range in which it largely has traded since mid-June, … Read more

Fed Preview: Bitcoin Investors to Look Past Jumbo Rate Hike and Focus on Economic Assessment and Borrowing Cost Estimates

Bitcoin Investors to Look Past Jumbo Rate Hike and Focus on Economic Assessment and Borrowing Cost Estimates

With risk assets, including bitcoin, under pressure ahead of Wednesday’s pivotal Federal Reserve (Fed) meeting, pundits think markets have already incorporated a super-sized rate hike. So the focus will be on what the Fed says concerning the persistent core inflation, (core inflation strips out the energy and food components), and the labor market and demand conditions that … Read more

Parabolic Bitcoin Bull Run Likely After Dormant Coin Supply Peaks, Past Data Suggests

Parabolic Bitcoin Bull Run Likely After Dormant Coin Supply Peaks, Past Data Suggests

The view that bitcoin’s (BTC) fate is closely tied to what the Federal Reserve (Fed) does has been widely discussed. As a result, most traders looking to time the next parabolic bull run are waiting for the world’s most powerful central bank to declare victory over inflation and abandon liquidity tightening. While the Fed decisions … Read more

Market Wrap: Bitcoin Slumps to Lowest Level in Over a Month After Powell Affirms Hawkish Monetary Policy

Bitcoin Slumps After Fed Chair Jerome Powell Affirms Hawkish Monetary Policy

Bitcoin (BTC) dipped to its lowest price in over a month after U.S. Federal Reserve Chair Jerome Powell doubled down on restrictive monetary policy early Friday at the central bank’s Economic Symposium. The largest cryptocurrency by market capitalization hit a low of $20,549 but is now trading around $20,666, down 4.3% over the past 24 … Read more

Powell warns of ‘some pain’ ahead as the Fed fights to bring down inflation

Recession obsession fears

Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy. In his much-anticipated annual policy speech at Jackson Hole, Wyoming, Powell affirmed that the Fed will “use our … Read more

Powell is not likely to tell investors what they want to hear in Jackson Hole speech

Jerome Powell interviewed at Jackson Hole, Wyoming on Friday, August 25, 2017.

Investors are looking for new guidance in Federal Reserve Chairman Jerome Powell’s Jackson Hole, Wyoming, speech Friday, but he could instead deliver the same inflation-fighting message, just with a much tougher edge. Powell is expected to emphasize that the central bank will use all the firepower it needs in the form of interest rate hikes to snuff out … Read more