🎙Uncle Powell maintained rate hike stance🎯

He hammered the idea smoothly that a continuous rate hike is still warranted. One promising statement was that he acknowledged the scenario of the “disinflationary process” had begun. This comes at a critical time after a dramatic surprise job report. So, it is the first shoot of a positive sign in his statement.

The blowout job figure had indeed caused some uneasiness among investors who had initially anticipated or at least hoped for a pause in the rate hike cycle. Thus, speculation of a more hawkish Powell was roaming around the talks of the town. 

Nonetheless, he maintained his tone, similar to the FOMC conference. Investors heaved relief. That’s the second sign of happiness for investors.

📊Job reports hint at a long fight against inflation🎲

As Uncle Powell spoke to David Rubenstein, he reflected on the idea that the robust job figure further strengthened the notion that service inflation will likely be a sticker for a more extended period. Thus, investors can best digest an elevated interest rate for a prolonged period. 

We further increase our odds that the federal fund rate, terminal rate, as some say, should hit above 5%. A downside risk is that goods inflation which has come down, may revive again should exogenous shock hit the supply chain again. 

📮What are our dishes today? 

There are several speeches. Let’s go through them. 

At 10.15 pm, FOMC member William will begin speaking. This is followed by Fed Barr, who is expected to talk at 11 pm. 

It is 8 Feb, Wednesday, 8.50 am in Singapore and 7.50 pm in New York. The market is revitalized with a strong showing after a loud swing. So let’s aim for a good trading day.