Author: Zac Martin, Investment Associate
Week Ending August 22nd – Heading West
Jerome Powell, Chairman of the Federal Reserve, spoke at the Economic Policy Symposium in Jackson Hole on Friday. Powell’s remarks signaled that the Fed seemed open to resuming rate cuts within the year. Primarily highlighting that the employment part of the Fed’s dual mandate is beginning to exhibit some downside risks as outlined within July’s Payroll number. While the employment risks are beginning to match the inflation risks, Powell did reiterate that the Fed will not hesitate to move if inflation accelerates. Markets reacted positively toward a more dovish tone with the S&P500 climbing 1.5% that day.
The NAHB Housing Market Index declined 1-point for August, this was below analyst expectations. Current sale conditions have weakened slightly while forward sales expectations held steady.
Leading Economic Indicators declined by 0.1% in July, continuing its trend over the past several months. Over the last six months the indicator has contracted by 2.7%, declining faster than the same period a year ago of 1%. The contraction continues to be a result from weakening New Orders and Average Consumer Expectations for Business.
The Week Ahead:
- Consumer Confidence (8/26)
- Richmond Fed Index (8/26)
- Q2 GDP 2nd preliminary reading (8/28)
- Personal Consumption Expenditures (8/29)