It took a bit, but stocks are rallying following Fed Chairman Powell’s comments from Jackson Hole, Wyoming. Prior to his remarks, stocks were down quite a bit. The overnight weakness can be largely attributed to news that China announced a new round of tariffs on U.S. products. The tariffs will be placed on our agricultural products, beef, and pork. Considering that they haven’t been buying our products of late anyway, I’m not terribly sure this changes a whole lot.
Powell once again said, “We will act as appropriate to sustain the expansion.” He also menitoned that the economy is in a good place, but that significant risks still exist. He feels inflation is moving closer to the goal of 2 percent, and he’s concerned about a global slowdown. Ultimately, it appears we’re still on track for another cut next month, he provided no other details directly related to rates. The rest of the day’s news slate is pretty slim, but next week’s should provide some excitement. The highlight of which being Thursday’s GDP reading.