#FOMC Freebie: Powell May Turn Dovish But Can't Fight the Cycle
The follow excerpts are from this week's Parallax note. For more information, please see bio.
"Combining market volatility, tightening financial conditions and pressure from President Trump, Fed Chair Jerome Powell will have his work cut out for him."
"It is imperative that it's understood that while dovish policy will initially hit the dollar negatively, deceleration in inflation is inherently and vehemently positive for the dollar. Unless the rate of change in inflation trends higher, expect dollar strength."
*DXY on main chart is inverted.
"Combining market volatility, tightening financial conditions and pressure from President Trump, Fed Chair Jerome Powell will have his work cut out for him."
"It is imperative that it's understood that while dovish policy will initially hit the dollar negatively, deceleration in inflation is inherently and vehemently positive for the dollar. Unless the rate of change in inflation trends higher, expect dollar strength."
*DXY on main chart is inverted.
