Fed officials have indicated in recent days that it’s a coin toss whether the U.S. central bank will raise interest rates again in September. Now that all the data clearly points to another hike, Fed Chair Jay Powell is changing his tune.
There’s now just a 3% chance of a Fed rate hike.
“Powell is full of shit,” Keith McCullough says in this clip from The Macro Show. “He sees that data and now you’re not going to raise? Come on, man. There’s the state, there’s the elites, then there’s the rest of us. Elites said they don’t want hikes, and that’s why he’s not doing it.”
“The data from (Powell’s address three weeks ago at) Jackson Hole to now has literally all gotten more hawkish, especially inflation,” Daryl Jones points out. “PPI doubled, jobless claims are at their lowest level in seven months and Retail is better than expected.”
Right now, it appears the wishes of Wall Street executives carry more weight with Powell than the needs of the public.
“Ridiculous, ridiculous, ridiculous. Powell, if you’re data dependent, you’ll raise rates next week even though you know that’ll shock the market,” McCullough adds. “It should’ve been a coin toss because he said it would. It turned up heads, and he said he’ll do tails. You’re a better guy than that.”
Watch the full clip above.