Macro Federal Reserve Chair Jay Powell’s comments and updated interest rate forecasts aim to reinforce a “Goldilocks” narrative—suggesting that economic conditions are neither too hot nor too cold while inflation continues moving in the right direction. The big question for the upcoming week is whether the Federal Reserve will cut rates by 25 or 50 basis points (bps). The market is debating this first cut and trying to confirm if…

Macro This week’s economic developments were driven by the August payroll report, which missed expectations for job growth, while the unemployment rate was better than anticipated. The market now treats “bad news as bad news,” with caution reflecting a potential shift. A key issue is that economic slowdowns often start from strong levels, making distinguishing between a soft and hard landing difficult. Early on, job creation and wage growth may…

Macro This week, we had normalization of the macro numbers, with GDP revised upward, an uptick in consumer sentiment alongside a slight rise in the Personal Consumption Expenditures (PCE) index. This week’s key economic releases included: The GDP growth estimate for Q2 nearly doubled the Q1 estimate. This strength was primarily driven by consumer spending and business investments, which continued to show momentum. On the other hand, GDI only increased…

Macro Powell’s comments at Jackson Hole on Friday and BLS payrolls benchmark revision on Wednesday were the week’s highlights. Jackson Hall symposium is vital as the central bankers from around the world will discuss progress on the inflation front, which was a global phenomenon this time. Since inflation is no longer a primary concern while the restrictive effects of higher rates continue to dampen economic activity, the global tightening cycle…

Macro In July, headline and core CPI eased for the fourth consecutive month, with year-over-year rates dipping to 2.9% and 3.2%, respectively. The 3-month moving average fell to an annualized 1.58%, its lowest point over three years. However, the overall CPI drop was largely driven by a sharp 2.3% decline in used vehicle prices—a trend unlikely to persist. Meanwhile, “super core” inflation, excluding shelter costs, increased by 0.1% after being…

Macro This week, the market has dealt with tremendous volatility, most of which was a repercussion of the Bank of Japan’s previous week’s decision (Wednesday, 31st of July) to hike for the second time in 17 years and bring interest rates to 0.25%. This decision made ‘carry-trade’ more expensive, causing Nikkei to sink 8.3% in the following 2 days (-2.49% on Thursday 01/08, and -5.81% on Friday 02/08). The magnitude…