{"id":58283,"date":"2021-12-01T00:35:32","date_gmt":"2021-12-01T08:35:32","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=58283"},"modified":"2021-12-01T01:46:42","modified_gmt":"2021-12-01T09:46:42","slug":"j-pow-hawkish-jawboning-sparked-fresh-market-jolt-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/12\/01\/j-pow-hawkish-jawboning-sparked-fresh-market-jolt-the-market-breadth\/","title":{"rendered":"J-Pow’s Hawkish Jawboning Sparked A Fresh Market Jolt – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

Federal Reserve Chairman Jay Powell, aka “J-Pow”, finally decided the time has come to drop the descriptor “transitory” from America’s current experience with inflation (see the 37:00 mark in the video below). J-Pow even acknowledged that “it is therefore appropriate…to consider wrapping up the taper of asset purchases…perhaps a few months sooner” than originally planned (see the 54:00 mark in the video below). That revelation likely launched a campaign for jawboning<\/a> inflation away. To-date, casually dismissing the “transitory” inflation problem has produced little except louder and louder complaints about persistent inflation problems. I call this action jawboning because J-Pow only referenced his own opinion. He was not in a position to commit the Fed to action. In fact, he added “I expect we will discuss that in our upcoming meeting.” In other words, the Fed has plenty of room to walk back this sudden display of hawkishness.<\/p>\n\n\n\n

The Fed may eventually choose to walk back a faster tapering because of reactions in the stock market. The immediate reaction to the jawboning took the major indices down from Monday’s relief bounce and sent the volatility index soaring all over again. Suddenly, market participants face new risks even if in the grander scale of things a few months faster for tapering means precious little. <\/p>\n\n\n\n

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