Good Friday AM from your Hometown Lender,

Today is the pivot day for markets…

With Fed Chairman Powell speaking at the Jackson Hole conference regarding the economy and monetary policy (excerpt below). Everyone has been expecting the Fed to cut in September and now, we know the Fed is expecting that as well. Bond prices are positive today pushing rates lower but the reaction to the Fed Chairman’s speech is somewhat muted as a majority of the improvement in rates has already been taking place over the past month. Still the 10-yr note is at 3.82% and right at a line of resistance. We need to push and close below this to open the next trading channel for more rate improvement.

“The time has come for policy to adjust,”

Powell said in his speech during the Kansas City Fed’s symposium in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.” “Inflation is now much closer to our objective, with prices having risen 2.5% over the past 12 months,” he said. “After a pause earlier this year, progress toward our 2% objective has resumed. My confidence has grown that inflation is on a sustainable path back to 2%.” “We will do everything we can to support a strong labor market as we make further progress toward price stability,” he said. “With an appropriate dialing back of policy restraint, there is good reason to think that the economy will get back to 2% inflation while maintaining a strong labor market.”

Stay safe, enjoy the weekend and first, make today great!