Last Thursday Jerome Powell indicated that the economy is nowhere near the 2% inflation target and additional tasks may be needed and the markets retreated. Now, three business days later, inflation indications dropped a fraction and the markets take off like a rocket setting the stage for another comment by Powell regarding the ultimate inflation target and a sell off in the market. Reminds me of “One flew over the Cuckoo’s Nest” filled with resident market traders!
Be mindful of the warning signs ⚠️
Last Thursday Jerome Powell indicated that the economy is nowhere near the 2% inflation target and additional tasks may be needed and the markets retreated. Now, three business days later, inflation indications dropped a fraction and the markets take off like a rocket setting the stage for another comment by Powell regarding the ultimate inflation target and a sell off in the market. Reminds me of “One flew over the Cuckoo’s Nest” filled with resident market traders!