Most prescient headline ever. Posted at 6:53 a.m. Friday morning, hours before Jay Powell's 8-minute warning:
Later, 3:26 p.m. CT after market close: Dow falls 1,000 points and NASDAQ slumps 4 percent.
For investors: all things being equal, after Jay Powell's speech yesterday,
- would you have preferred getting a 6% APR dividend; or,
- a WSJ article telling you "your" company authorized more stock buybacks
Jay Powell, a new sheriff in town:
- I don't think pundits truly understand what happened yesterday;
- the timing came right after the Inflation Reduction Act was passed and the Student Debt relief order was announced;
- Powell started his speech even before CNBC was ready to televise it;
- CNBC talking heads were standing by, waiting, never got the word, and were caught off-guard when they joined Powell's speech already in progress
- shortest major Fed speech ever; shortest Jackson Hole speech ever;
- most transparent Fed speech ever
- mispronounced "recession" when he said "pain"
- pushed a few incumbents under the bus
- the speech will be interpreted as empty words by many if Jay Powell doesn't announce a Fed meeting this next week (to convene before August 31, 2022)
The speech, link here.
