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TheFederal Reserve's July policymaking meeting ended with no interest-rate hikes nor forward guidance but with a boatload of Fed speak and word salad.
Kevin Warshinsisted the Fed will still be able to lowerinflationto its 2% target — a measure it has missed for five years — but didn't say how.
households, businesses and investors to continueto be patient with the central bank.
Meanwhile, markets stumbled after the Federal Open Market Committee voted 9-3 to hold benchmark short-term interest rates steady on July 29.
The 30-year Treasuryyieldhit 5.2% and the Dow closed down 1,153.18 points (or -2.19%) signalingWall Street's concern that the new Fed chair's approach won't be able to beat back inflation much longer thus leading to even higher rate hikes.
Cetera Financial Group Chief Investment Officer Gene Goldman said that the market wasnot "shrugging off" the hold.
"It's a market betting a hike is coming sooner.
September, right after Jackson Hole and with a new dot plot in hand, is shaping up to be the meeting that matters,'' Goldman told TheStreet in an email.
Warsh is choosing flexibility over clear guidance offered by past Fed chairs on purpose, Goldman said.
"He wants the debate out in the open instead of settled behind closed doors.
That means more ups and downs around every Fed decision this year,since the market doesn't get a clear heads-up anymore on what's next,'' Goldman said.
TradeStation Global Head of Market Strategy David Russell said the Iran War and the recent resumption of military escalation is key to what the Fed's next move will be.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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