Powell...It´s All You.
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Powell...It´s All You.
Dear investor.
Powell, when you open your mouth, count on a sea of red...more like someone spilled red paint all over our screens.
Senator Elizabeth Warren who, to say the least, is not a cheerleader in Powell´s camp, was very direct in asking what he feels when 2 million people must lose their jobs...
to achieve his goal of controlling inflation. To which he replied, more than 2 million people are paying higher prices for the things they need.
Investors, there is no easy answer in this fight. Casualties are going to occur.
The problem sometimes comes down to language and the emphasis on certain points which seem more ego-driven.
We should expect within the next two weeks a rise in rates leaning heavily towards 50 basis points rather than 25.
All this impacts not only regular folks but the U.S.government as well; Powell told Congress to raise the debt limits and stop fighting back and forth. There is no other solution.
Interest payments on U.S. debt are at 1 trillion dollars per year, higher rates definitely hurt... Powell speaks again tomorrow ...
Much more economic data to be released later this week.
Short-term: Headlines are your buying opportunities.
Long-term: Fundamentals are your guide.
Much success to all. |
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