Former Israeli central banker and now Vice Chair of the Federal Reserve Stanley Fischer was jawboning at Jackson Hole conference over the weekend, since Fed chief Janet Yellen did not attend.
He believes the Fed is on track to raise rates this year, until it won’t be able too. He also said the Fed won’t wait for inflation to hit 2% benchmark before raising rates.
Well in a deflationary economy does that mean when it hits 1%, because we will not get near 2% anytime soon while global prices and growth are sliding.
Crude oil is the barometer of growth still. And as West Texas oil slides bank into the $30 range, it shows that the slowdown is accelerating.
Global shipping indices are also at multi-year lows, during the important holiday inventory build.
Just a by the way, how comfortable are you with the second most powerful banker in the US — that being Fischer — holding dual citizenship in the US and Israel?
It certainly gives me pause.
So the last day of August is upon us. The stock market now enters the silly season.
Here are the three exchanges numbers before the open.
Dow Jones: 16,643.01
S&P 500: 1,988.87
We’ll come back to these numbers in two months. Chances are they may be 10%-20% lower, without having a change in rates.