Thursday, 27 August 2020

INVESTORS AWAITING FED’S POWELL SPEECH BEFORE MAKING THEIR NEXT MOVE

Jerome Powel
Hussein Sayed,
Chief Market Strategist at FXTM

Traders and investors across all asset classes are all ears to what the Federal Reserve Chair Jerome Powell has to say today at the annual Jackson Hole meeting. Buy into #Ibeju #Lekki plots of #land. Click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html Inflation is the keyword and the policy framework to target it will determine whether we see more upside to risk assets in the months to come.

Do you know that the kind of #vehicle you drive goes a very long way in affecting your #image? Yes, your vehicle tells people, including your #prospective #clients, how #comfortable you are. #Comfort is directly proportional to #competence. Of course, if you are competent in what you do, you will be comfortable enough to afford at least a #brand #new vehicle. Have you ever wondered why #banks and other #financial #institutions give their #marketers brand new cars? Your level of comfort goes a long way in determining if your prospective clients will trust you. The reason why you have not won those contracts or deals could be because your prospective customers think that you are incompetent owing to how worn-out your car is. Yes, the onus is on you to acquire brand new cars. Top sales people buy new cars every year. Do you know what? That worn-out vehicle that you currently drive can look like a brand new one. We, at GOF AUTOS LIMITED can make it possible via total #body #work, #refurbishing, #priming, #painting with the best #paint in the #world called #SIKKENS #PAINT, #OVEN #BAKING with a world-class oven and #BUFFERING. #Blue-chip #companies, #CEOs and top #managers give us all their worn-out vehicles for body work. You, too, can enjoy our world-class services. For details about GOF Autos Limited, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html

So far, we have only seen rising prices in asset classes such as stocks in particular, but throughout the past decade, the consumer price index has averaged around 1.5% so missing the Fed’s 2% inflation target. You can own a #land @ #Ajah #Lagos. Click: http://www.tectono-business.com/2020/02/urban-prime-two-estate.html The FOMC’s dual mandate has been to maximise sustainable employment and keep prices stable and while they have been successful in the former (prior to the pandemic), they have failed miserably on consistently hitting their price target.

Average inflation targeting’ is the new formula expected to be endorsed by Powell today. It’s a policy framework that allows inflation to run above or below the 2% target, but given that inflation has been running below target for several years, the objective would be to allow price rises to overshoot for more extended periods before tightening policy.

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However, the idea of allowing inflation to run above target for extended periods is hard to sell to politicians, so it will be interesting to see how Powell is likely to package the new policy framework.

The positive sentiment in US equities continued yesterday with the S&P 500 and Nasdaq hitting new record highs ahead of this week’s key risk event. It seems expectations may be too high as Powell will need to be overly dovish to meet these expectations. No one believes that he will disappoint the markets but given the scale of the latest rally in stocks, chances of a pullback are high before bulls resume their march higher.

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