September 18…)
“The economy is in good shape. We want to keep it there.” Jay Powell
“I would not be allocating money at these yield levels to long term bonds.” Gundlach
Powell was confident and loquacious. A few smiles. According to CNBC he said recalibrate 9 times meaning according to some, “less data dependent.” But he said, “Rate policy will be a meeting by meeting “process”. Nothing new there.
Rallies were sharp across the board and sold in unison by sellers at the highs... across the board in unison. Comex metals touched +1% after the statement. Gold settled 1% lower at the bell. Silver fell 2.5 %. Stocks were well maintained at unchanged for a while after being capped at the highs but traded red in very shallow dips into the close. The dollar index broke 100 and was immediately supported. In short, everything got hit.
Pundits are 100% bullish on stocks. Gundlach is leaning towards a recession and reminding us that rates go down if demand for credit falls as well as fed policy. He thinks a lower dollar implies opportunities in foreign markets (he didn’t say JPY, but I doubt he meant TRY). Interest rate futures were decidedly lower on the CBOT. The dollar was the only winner today, which is sort of weird considering the size of the cut.
In other markets
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