Jerome Powell Speaks

Key Takeaways from Thursday’s Speech [Image] Jerome Powell Speaks: Key Takeaways from Thursday’s Speech This needs your attention… Confidence is a powerful force in the world of finance. It's the glue that holds together the intricate web of the global financial system. When businesspeople, investors, and traders believe in the stability and future of an economy … they invest in it, nurture it, and let it grow. But what happens when that confidence is shattered? Unfortunately, Thursday’s speech by Federal Reserve Chairman Jerome Powell did little to inspire or build upon this crucial trust. If you’re struggling to make sense of what the Fed is up to, you’re not alone. But I’m here to help. Keep reading and I’ll give you my complete breakdown of what I took from Powell’s speech on Thursday… The Fed’s Bumpy “Flight Path” Before I get into my breakdown of Powell’s speech, allow me to draw an analogy… Imagine the economy as a cross-country flight going through some unexpected turbulence… The crew and the passengers on board look to the pilots for reassurance and guidance, especially when skies get particularly bumpy. In the context of the U.S. economy, Jerome Powell and the Federal Reserve are the pilots. The plane’s stability relies on the pilot’s ability to navigate the air and chart a clear course. Powell's recent speech was an opportunity to do just that, to reassure the world that despite the rough ride, the plane is on a steady flight path. But instead of reassurance, we got more lack of clarity… J. Powell’s Plan (or Lack Thereof)... Many financial experts and market pundits have expressed concern over the lack of a clear plan from the Fed. The market's trust in the Fed has been waning, and Powell's latest performance did little to rebuild that faith. Worse yet, this growing lack of confidence isn't just a domestic issue… With escalating geopolitical tensions and uncertainties looming large on the global horizon, the eyes of the world have been firmly fixed on the U.S., hoping for some beacon of stability. Many nations look up to the U.S. as a major economic powerhouse and a stabilizing force in an often unpredictable global economic landscape. They hope that if the U.S. economy remains strong and stable, it can act as a buffer against wider global economic challenges. However, the recent reactions to Powell's speech suggest that instead of offering that stability, the U.S. is contributing to the global sense of unease. As a result, there has been a sell-off of riskier assets, a clear sign of declining faith in the market. Moreover, the continued dumping of U.S. treasuries indicates an even deeper concern. While some might attribute this to factors such as terminal rates, I think the underlying issues stem from a more fundamental mistrust in the U.S.'s governance and its creditworthiness… How Can the Fed Restore Confidence? The U.S. has long been regarded as a “safe haven” for investments, with its treasuries being seen as one of the safest assets you can hold. If faith in these treasuries diminishes, it reflects a broader concern about the U.S.'s economic and political stability. The pressing question then becomes: What needs to be done to restore confidence? The first step is to have a plan. As in many other aspects of life, uncertainty breeds anxiety in the global economy. When traders and investors aren't sure what the next steps are (or where the journey is headed), doubts begin to creep in — and asset-selling tends to ramp up. A clear, well-articulated plan from the Fed could serve as a roadmap, guiding the world economy toward a brighter, more stable future. But we didn’t get that on Thursday. I think Powell's speech was a missed opportunity. Instead of assuaging fears and bolstering trust, it seemed to exacerbate existing concerns. The Fed needs to understand the importance of confidence in the functioning of the economy and take steps to restore it. Until then, the U.S. economy, and by extension, the global financial landscape, will continue to "twist in the wind", hoping for a clearer direction and firmer leadership. The Breakdown Here’s a quick breakdown of my thoughts on Powell’s speech: - Confidence holds together investments, businesses, and economic growth…. - But — there's a growing lack of confidence over the Federal Reserve's unclear plan… - Trust in the Fed has been decreasing, and Powell's speech didn't rebuild that trust… - The downside move in long-term Treasuries implies broader concerns about the U.S. economy… - Powell's speech could have addressed fears, but instead, it seemed to intensify existing worries… - The Federal Reserve needs to recognize the value of confidence for the economy's functioning and act to restore it… Closing Thoughts I understand how difficult it is to trade this market with consistent discipline. Don’t beat yourself up if you’re not crushing this price action. Some of the world’s most successful traders are probably struggling in this tape. But now, I’m here to help guide you. Why should you listen to me? Because I've navigated through dozens of market downturns, like the 2010 Flash crash and the COVID-19 pandemic. And the truth is, I’ve made some of my all-time best trades during these major pattern disruptions. Stop viewing volatile market moments as obstacles and start seeing them for what they really are — opportunities. As always… Stay Street Smart, Jeff Zananiri P.S. The latest overnight trade idea is out for Burn Notice Members. But I’m even more excited about the next one! [SEE MY NEXT TRADE IDEA RIGHT HERE!]( P.P.S. World-class options trader Ben Sturgill is about to draw the curtain back on a market event like no other. Set a reminder for Tuesday, October 24th at 8 pm EST. [SEATS ARE LIMITED – Register NOW!](   66 West Flagler Street STE 900 Miami, Florida 33130 United States [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Click Here to Unsubscribe]( **Our gurus teach skills others have used to make money. 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