There are divergent interpretations of Powell’s speech. The stock market response was clear, ‘buy with ears pinned back’. But, there a range of views on the speech. I posted SG and BMO responses here:
Federal Reserve Chair Powell spoke (US time), back tracked on his ‘long way from neutral’ (on interest rates): SocGen said on the speech: But I like Bank of Montreal’s take:
More BOE scare tactics Mark Carney didn’t learn his lesson. Arguably the low point of his governorship of the Bank of England was overly inserting himself in the Brexit referendum debate. The BOE made doomsday forecasts that looked like they were trying to frighten voters into voting to remain.
Powell answers questions: – With uncertainty, we have been moving gradually and learning as we go – Monetary policy isn’t ideal tool to address financial imbalances The questions were abysmal. He didn’t even have a chance to expand on the path of
Trump says he is close to doing a deal with China The Nasdaq index is down and trading at new session lows. The price got a boost on a headline saying Trump is close to doing a deal with China, but then added “he does not know if he wants to do it”. He added…
Stocks briefly liked the headline Trump says he is close to doing something with China on trade but he doesn’t know if he wants to do it. “Frankly, I like the deal we have right now,” he said, referring to tariffs.
GDP tracker bumped up The fourth quarter continues to track in the mid-2s but it’s still a long ways to go until we get a clear picture. “The nowcast of fourth-quarter real personal consumption expenditures growth increased from 2.6 percent to
Trump speaking to reporters at the White House Buzzfeed on many of the details. The showed that Trump signed a letter of intent to build the tower early in his campaign for the Republican nomination. They show some of the connections between Putin, Russian intelligence, Trump and Cohen.
Weaker GDP sends CHF lower The CHF is weaker today. A weaker than expected 3Q GDP (-0.2% vs 0.4% expectations) helped to weaken the CHF. Even so, the USDCHF could only retrace 50% of the move lower yesterday and to the 100 hour MA at 0.99724 area. Buyers are making a play, but need to…
Italy’s Salvini once again hints at possible changes It was once written in stone but now it’s written in sand on a windy day. Salvini earlier today said the deficit won’t be cut below 2.2%.