President Trump's strategy to defend the economy's strength in the face of recession seems to have worked temporarily. Bond rebound yields relaxed markets on Monday, but the stock market dipped into the red on Tuesday, with Dow plunging after two gains with gains.
Caught in this economic and political storm is Fed leader Jerome Powell. He will talk about the challenges of monetary policy at the Fed's annual Jackson Hole conference on Friday.
Powell must be tight, as he faces relentless pressure from Trump to cut interest rates as quickly as possible, while maintaining the Fed's independence. Markets have already priced in several interest rate reductions this year.
<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "That's why the bar is pretty high for Powells comments on Jackson Hole. "His latest press conference after & nbsp; The July FOMC meeting left real doubt & nbsp; about the Federal Reserve & # 39; s future course of action. The markets think he will be clearer by the end of this week, "a recent Datatrek Research note states." data-reactid = "18"> That's why the bar is pretty high for Powell's comments on Jackson Hole. His recent press conference following the FOMC meeting in July really left doubt on the Federal Reserve's future course of action. Markets think he'll be clearer by the end of this week, "said a recent Datatrek Research note.
Datatrek Research co-founder Nick Colas says Powell may be able to avoid a sharp decline in stocks just by signaling that The Fed will "embark on a steady diet with a cut in interest rates throughout the rest of 2019," he said.