It was a dry, humorous interview at the Economic Club of DC, which included gratuitous laughter and nonsensical reveals about Jerome Powell, such as his uncanny ability, bestowed upon him from birth, to automatically pronounce any word said to him backwards.
PRONOUNCE THIS BACKWARDS POWELL: ECAF KCUF
— The_Real_Fly (@The_Real_Fly) January 10, 2019
The Dow turned lower after Powell made those balance sheet comments.
Highlight: Stocks take a turn for the worse after Fed Chair Jerome Powell says, "We don't know the exact level the balance sheet will end up at once quantitative tightening is over." @scottgamm reports from the floor of the @NYSE.https://t.co/ObzMOMFjVy pic.twitter.com/dojgNsZAYW
— Yahoo Finance (@YahooFinance) January 10, 2019
Why is this a concern? Because it’s deflationary and, in theory, should hurt equity prices.
#Fed's Powell: We want to have the balance sheet return to a more normal level… no larger than it needs to be to conduct monetary policy effectively. Dow Jones turns negative an Powell's remark about balance sheet at Economic Club of Washington. pic.twitter.com/e6sYstYMbV
— Holger Zschaepitz (@Schuldensuehner) January 10, 2019
That being said, there is very change in bond and commodity markets. I’d like to see market go lower with some energy before initiating some short positions.If you enjoy the content at iBankCoin, please follow us on Twitter