Daily Alert – Thursday 23rd June 2022: Powell says soft landing “very challenging”

Mark NugentDaily Alert, June 2022

Daily Alert – Thursday 23rd June 2022: Powell says soft landing “very challenging”

Good morning.

Fed Chair Powell told senators in the US that delivering a soft-landing for the US economy would be “very challenging”. He also re-stated his determination to get inflation back to the target of 2 percent. So, we have inflation, the bulk of which is not created by internal economic activity, but by external factors. We have a Fed, and they’re not the only ones, using the one tool they have, interest rates, to force inflation back to 2 percent. This does not add up and we see more and more institutions saying a recession is inevitable. I guess the beatings will continue until morale improves.

Risk-sentiment was indecisive yesterday. Right now, I see WTI (oil) sitting beautifully on its 100-day moving average, which is a nice place for support. However, I think we’ll need to see an improvement in morale before it, and equities, begin to move upwards with any real momentum.

That’s it from me. Have a great weekend when it comes, and I’ll be back on Monday.

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