“He who awaits much can expect little.”
The Big Story of the Week was Powell’s speech in Jackson Hole. The Chairman’s message was clear: The Fed’s focus has shifted exclusively in the direction of U.S. Employment. Inflation will be allowed to run hot–especially in services and shelter.
There was little doubt that more stimulus was coming. Powell has signaled for months that he wants to stimulate—all he needed was supporting evidence. He got it. The BLS revised its new job calculations (Reducing the new jobs created in the year by over 800,000), which now indicate that employment growth was 30% lower than previously advertised.