Federal Reserve, Wall Street and Jerome Powell
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Wall Street falls
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Wall Street analysts are signaling that all this drama contains serious risks for the bond market, the dollar, and U.S. assets generally. If Trump gets his way, and U.S. monetary policy ends up being run by people who will do what he wants—as opposed to maintaining full employment and low inflation—then expect investors to recoil.
The consumer price index for July will come out on Tuesday, and Wall Street expects a 0.2% monthly overall increase and a 0.3% uptick in the core CPI.
Producer prices jumped in July but may not translate directly into the Fed’s preferred inflation gauge, easing fears of runaway inflation. Jobless
T-minus one day — As investors across Wall Street anxiously await Fed Chair Powell’s speech Friday at Jackson Hole in Wyoming, stocks slipped Wednesday with the S&P 500 dropping 0.2 percent and the technology-heavy Nasdaq sliding 0.6 percent.
Wall Street shares dropped on Wednesday, with a tech selloff extending into a second day, while a key meeting of central bankers later this week remained in focus for currency and rates traders.