Amid a busy data calendar, the Federal Reserve took center stage this week and much of the drama took place behind the scenes. Heading into the much-anticipated policy meeting it was unclear who would participate, as the race to confirm a new governor to replace the departing official, Adriana Kugler, continued until the day before…
It’s party time for Fed watchers, as policymakers are expected to add more punch to the bowl this coming week. Following a ten-month abstention, officials are likely to resume the rate-cutting campaign that included a full percentage point reduction over the final three meetings of last year, kicked off by a half point haircut in…
The continued slowdown in job growth last month will not please the administration, but at least it wasn’t blindsided by the astonishing downward revisions to previous months that appeared in the July jobs report. Still, the August reading on the labor market added a punctuation mark to the slowdown that has been underway for several…
The weekly commentary will not be published over the Labor Day weekend. The next issue will be published on September 5. All eyes were on the annual Jackson Hole symposium this week, hoping to see if Fed Chair Jerome Powell would provide any clue as to when, or whether, a rate cut would be coming….
The government pressure on the Fed to cut rates next month has reached a fever pitch, with the president, Treasury secretary and other administration officials, not to mention some members of the rate-setting policy committee, all chiming in to provide Fed Chair Powell reasons to do so as quickly as possible. Most also want the…
The political maelstrom following the surprisingly weak jobs report last week has subsided, but the shift in perceptions regarding monetary policy and, importantly, the economy’s performance remains intact. Until recently, the U.S. economy has been widely hailed for its resilience, bucking the myriad headwinds from tariffs, the geopolitical tensions they created, downbeat consumer confidence and…
The debate over whether the economy is responding more to tariffs or interest rates will undoubtedly heat up, as the week’s busy calendar of data only added fuel to the fire. One thing is clear: following Friday’s jobs report, the financial markets dramatically repriced the odds of a rate cut in September, giving it more…
We are entering the dog days of summer, and the oppressive heat and humidity are, on schedule, buffeting the weather-weary victims of Mother Nature. Another target taking the heat is Federal Reserve chair Powell whose refusal to cut interest rates is drawing withering criticism from President Trump. Unfortunately, Powell cannot escape to an airconditioned room,…
Once again, the U.S. economy is showing that it is not ready to roll over in the face of higher tariffs and other distractions that many thought would be taking a more damaging toll by now. Nor does it seem to be in the grips of a tariff-induced inflationary spiral about which the headlines have…
The on-again, off-again tariff threats were in full display this week, as President Trump once again postponed the levies that were scheduled to take effect on July 9, giving trading partners a reprieve until August 1 when the next escalation is set to go into effect. Whether or not market participants have become inured to…