That last point is very true. We cannot jump to any conclusions about Fed statements given the barrage of statements, none of which are based on discussing data.
Ignored
I thought everything he said was very true. The Fed is meant to be the steady hand and that's exactly what they will be, regardless of tantrums and pontificating with as yet unknown ramifications. The entire basis of current trade war rhetoric is US consumer spending being a desirable thing that other countries want a piece of. If that spending caves, as it seems intent on doing, we may have an entirely different scenario to deal with.
Powell and the Fed have much more street cred than the other guy treating the USA as if it were his private company not subject to judicial oversight. Interesting times ahead.
We just witnessed a negative quarterly GDP that came out at -0.3%. What is very interesting is what happened to the yields on the US debt. After the report came out that US economy contracted by 0.3% the yields on the US debt basically bottomed which is most unusual. One would expect that if the economy is slowing down, let alone contracting, that the yields would start to drop fast. But no...
Now, to understand why this is the case we must first understand what drives the yields higher or lower. Growth expectation, inflation expectation and debt level are the main drivers of yields. So, what the yields are telling us is that the US debt level is dangerously high. Also, recent inflation expectation isn't helping either. If the Fed doesn't manage to get inflation expectation under control soon, the yields on the US debt could go parabolic which will crash everything. The Fed doesn't have the time to screw around... the Fed should start hiking rates again before it's too late.
Low Impact
Breaking