Jackson Hole Wyoming, Mark Cabana, FED discussed on KDWN Programming


Financial world world looking for clarity on whether last month first fed rate cut in a decade likely marked the start of the period of easier credit how will give the keynote address following the end of the annual gathering of global central bankers in Jackson Hole Wyoming a bank of America Merrill Lynch's mark Cabana on what Powell needs to say I think is it me or the campus gotta do it has to do I think that he doesn't want to try to placate financial markets because financial markets are always going to want a little bit more and I think that will really hear from Powell tomorrow actually raises the risks of disappointing the market to some extent I think he's going to say is that worse dated dependent we're waiting to see how incoming data evolves and then we will act to sustain the recovery as necessary but I don't think he's going to pre commit to easing in September and I think that's what the market really wants I think the market really wants to hear that the fed is being proactive they're trying to get ahead of these issues and I just don't think that given the data flow in a divided committee that they have right now that he's going to be willing to do that so he's not even going to comment or seem to commit to a twenty five basis cut in in September then does that mean that this is how we get a look back at this Jackson Hole meeting just like we look back when Mario Draghi said we're going to use all means necessary we can look back and Brimbank using can be three is on the table now and say this was a meeting Jerome Powell got the fat and the box well I think he's gonna try to do is preserve option Alavi because frankly the fed is still divided and they don't exactly know how the data is going to break we know that trade is creating a lot of uncertainty for the fat but it's yet to really materialize into clear downside signals the employment backdrop is still very very strong you're right inflation is very weak and that's a problem for them but they don't really know if they can materially influence out with a twenty five basis point cut so I think he's going to do is try and buy some optimality again he's got a divided committee they're on certain and the leave one under right the trade for as long as they don't want under at the trade war I see real risks that the fed kind of slow walks the easing cycle that day you know just started at the last meeting and I think that that.

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