Fast pivot. Scratch last week. Stand up, sit down, stand up again and spin around. Things have changed fast…again.
Last week peace in Ukraine was all the rage. Trump took a day trip to Alaska to meet Putin and everything was peachy. An end to the Ukraine/Russia war looked promising. The first part of the week was abuzz with a Putin/Zelenskyy face-to-face meeting. Well, that was fun and exciting. This week, peace is out. Putin said he is OPEN to a meeting but he isn’t going to have one…unless he gets everything he wants. Obviously, Zelenskyy doesn’t like that. So, this week the war gets bigger. Let the missiles fly. Peace…one week you’re hot, the next week you’re not.
So the latter part of last week was all about the Fed, Fed Chair J. Powell, and the annual Jackson Hole Symposium. Would J. Powell signal an interest rate cut (or two)? Would the Fed say inflation was still a problem and needed to be monitored? Well, that was last week, and all the markets had a huge rally figuring J. Powell may not care so much about inflation. Interest rates were a lock to come down.
This week inflation is on its way out and replaced by employment. Yup. The Fed will now focus more on employment and less on inflation in setting interest rates. Certainly, that gives the Fed a little leeway to ease rates. But now if rates do get cut, it might be because jobs numbers are weak, which means…possible recession. OMG, let’s focus on jobs. Inflation OUT, jobs IN. I mean, it IS a new week.
The biggest thing that was out last week was the Cracker Barrel logo. The restaurant chain unveiled a brand new logo (very bland) that, it was hoped, would make their restaurants more cool, up to date, and edgy. NOT. Look next week for the NEW logo to be out and the old logo to be back in. Got it?
Last week may also have signaled a huge turning point for the economy. Simply put: Trump’s fast-paced agenda might be running out. Hold on before you pounce on that. DWN is totally unbiased and non-political. Just saying the “almost” peace turned negative. Trump’s lower interest rate wishes may come to pass because of employment sinking, which may trigger markets “adjusting” (selling off). The first half of the year has been quite positive, but things seem ready for a turning point.
Dinner at the old/new/old Cracker Barrel tonight?
Bill Taylor is the CEO and Chief Market Strategist at Digital Wealth News, offering expert insights on markets and asset classes. A proud Horned Frog and Texas Christian University grad, he played college basketball while there. With a strong finance background and passion for digital innovation, Bill shares thought leadership on market trends and portfolio strategy for our audience.
