Brian Evans
State Street Global Advisors argued in a recent investor note that Wall Street should brace themselves for a more hawkish Powell on Friday. The asset manager said the Federal Reserve does not want to repeat its mistake of letting its foot off the gas on inflation like they did back in 1970 under Fed Chairman Arthur Burns.
“The Fed likely isn’t convinced inflation has been beaten. As a result, there won’t be any curtain calls at Jackson Hole. Instead, investors should expect more tough talk from Chairman Powell that the Fed is more committed than ever to defeating inflation,” Chief Investment Strategist of US SPDR Business Michael Arone stated.
State Street indicated that inflation levels still remain noticeably above the Federal Reserve’s 2% target, and while its come down of late it still is above target and State Street believes Powell and the Fed will hammer it lower despite any of its effects.
On a separate note, heading into the open and ahead of Powell’s speech, broader market averages (DJI), (SP00), and (COMP.IND) along with their mirroring ETFs (DIA), (SPY), (IVV), (VOO), and (QQQ) all appear to look like they will open up trading in positive territory after Thursday’s selloff.
