Marketbites: Fed Policy Is Here To Stay
Updated: Sep 27, 2022
Portfolio Manager Commentary:
Stocks dropped again on Tuesday as the markets continued its Federal Reserve-induced decline. Both the S&P 500 and the Nasdaq dropped -1.1% and the Dow slid -0.96%.
Minneapolis Fed President Neal Kashkari told Bloomberg on Monday that he was “happy” to see how Powell’s Jackson Hole speech was received by investors with a market selloff. Khaskari said it was a sign that investors finally understood how seriously the Fed is committed to bringing inflation down to 2%.
Although all eyes are on the Friday jobs report, a strong number would likely just mean more of the same rhetoric from the Fed in terms of lowering inflation. Stephanie Lang, CIO of Homrich Berg, said that “We’re at a tricky juncture, but I don’t think one particular data point is going to give relief to the market. You’re going to need to see several months of the actual inflation data continue to move down for the Fed to feel any bit of comfort.”
Chart of the Day:
Today's chart shows the ratio of job openings to the number of unemployed people looking for a job. The current ratio of 2:1 means that there are two jobs openings for every one person looking for a job. This ratio is the highest on record since tracking began in 2000.