From Scott Garliss at the Stansberry NewsWire:
Recently appointed Federal Reserve Chairman Jerome Powell has had a messaging problem. On several occasions since his appointment, the market has anticipated dovish commentary from Mr. Powell. They have received the opposite. The Fed announced last week that Mr. Powell would be speaking on the economy this coming Friday in Chicago.
The first instance of mixed messaging from Mr. Powell was February 27. It was during the Fed’s bi-annual Humphrey Hawkins testimony. This is an opportunity for the Fed to give Congress an update on the state of the U.S. economy and its financial welfare. The markets expected Mr. Powell to continue the gradual policies of his predecessor, Janet Yellen.
The text released before his presentation expressed Yellen-like rhetoric. It stated that the Fed was intent on maintaining a path of gradual rate hikes. Mr. Powell read the transcript sounding very much like Ms.