Good Monday morning. Coming off of another week featuring ATH’s, the week ahead is a big one. The highlight; on Friday (9 am est) we’ll hear from Fed Chair J Powell from their annual Jackson Hole get-together. This is, without question, an important address. Most believe that Powell will take on a dovish tone, hinting that the Fed’s rate cutting program will resume at their September meeting (9/16-9/17). The CME FedWatch tool currently shows a 94.4% probability of a .25% cut.

Our view? Once again, the Fed is late. Not because the economy is in poor shape...Q2 GDP came in at 3% with Q2 earnings up 11.8% to date (stellar)...but because our 2nd America is being hammered by ridiculously high rates on mortgages, credit cards and car loans. The Fed Funds Rate of 4.33% is far too restrictive, especially with inflation refusing to budge higher, even in the face of Trumps tariff policies…another prediction that Powell has gotten exactly wrong. Popular opinion or not, Powell and his central b...