Markets quickly regalibrate previous high odds of an impending speed when Jets stirs in Jackson Hole for Kansas City Fed’s economic symposium.
The current data does not make the case for a September -defense, said Cleveland Fed -President Beth Hammack, talking to Yahoo News in Wyoming.
“We have inflation that is too high and has been in trending in the past year,” she said. “If the meeting was tomorrow, I wouldn’t see a case to reduce interest rates.”
She also argued that inflation numbers are only beginning to show the effect of tariffs and that the full effect would not be seen until next year.
Hammack’s comments are remarkable, showing that Fed -Chairman Jerome Powell continues to have plenty of support in his Hawkish attitude despite two dissident -dovic votes on the last central bank’s political meeting and President Trump’s continued campaign for lower rates.
Her remarks also come after a number of potential Powell replacements appeared on the air waves in recent days to argue for sharply lower interest rates. The latest this morning was the former St. Louis Fed chief Jim Bullard, who argued for political rates 100 basic points below the current level.
Just a week ago, Bitcoin touched a record high over $ 124,000 along with a nearly 100% expectation that Fed would trim prices next month. Seven days later these odds are slid back to 71%, according to CME Fedwatch and Bitcoin have thrown nearly 10% to the current $ 112,800.
The markets get to hear from Powell himself at his main address on Friday morning, and at this point it is almost certain that he will not turn Dove. Instead, he is likely to emphasize that inflation continues to remain too hot, and thus the need to wait and see the approach to adjusting monetary policy.
