It is a week of multiple Fed officials’ appearances, and the messages are clear: the fed will continue its interest rate hike momentum into the next meeting, and investors should not expect a policy pivot soon.
The same message was drummed by Uncle Powell, who emphasized the importance of staying aggressive till inflation starts to soften. He mirrored the 1970s when inflation posed a high cost to society. It attempted to quell any expectation that swift rising prices are a norm which would be a dangerous thought.
Therefore, it is expected that any pre-mature reversing of rate is not likely.
🛎Job data yet again prove resilience🗽
The latest data showed fewer Americans filed for first-time unemployment, which had hit the lowest since May. This reflects a robust labour market that shows little sign of softening despite the Fed’s action.
This contrasts with our earlier data which portrayed the unemployment rate as rising to 3.7%. Nonetheless, the Fed is on the path toward another 0.75% hike with a tight labour market and a healthy data set.
💰Crypto: The rainbow after the storm🌴
Key mining counters such as Mara and Riot rose sharply on Thursday as SEC Gary called on cryptocurrency players to register with the commission for the sake of investor disclosures and regulatory oversights.
It is seen as a move towards a more mature acceptance of crypto. Crypto tokens may be similar to securities, and he stressed that the agency has the power to regulate the sector.
It is a move that is likely to be beneficial for the sector, given a greater acceptance by institutions and retail investors as alternative sectors.
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All is well.