Jerome Powell hosts a town hall meeting this afternoon that will see the Fed Chair respond to questions from educators and students in a virtual forum.
As Rabo’s Michael Every noted earlier, “We don’t know what Powell will say, but sometimes a (moving) picture speaks a thousand words: like the one of poor young Afghans falling to their deaths from the outside of a plane in flight.”
“The Fed is, as we know, just as trapped in a failing Beltway-idiocy-and-profiteering paradigm as the US military was in Afghanistan.
But it has been doing QE for only 13 years, so perhaps still has at least another seven left until the painful denouement and collapse, and the presidential press conference where it is made clear that QE was never about nation building, and there are now two firm conditions for when such extreme monetary policy will be used.”
While most do not expect too much from the discussion, Kengo Suzuki, chief FX strategist at Mizuho in Tokyo, warned that the market may be underestimating the town hall “given it’s for educators and we’ll have Jackson Hole next week,” suggesting that:
“there’s a good chance that Powell will take the opportunity to prime the market for what will come in Jackson Hole.”
Watch Live (due to start at 1330ET):