The previous Fed Head Janet Yellen left her chair for the new Governor who will be making his first debut today. Jerome Powell is an FOMC member thus not new to the job. The market is excited about his first testimony due 13:30 but will be released about an hour and a half later. In the meantime, the US Durable Goods Orders report was released.
The numbers look terrible. Core Durable Orders declined by 0.3% this time, while the Main Core Orders fell by 3.7%. That’s quite a decline for a single month, even though Durable Goods Orders are pretty volatile.
At the moment the market is ignoring the Goods Orders report as the US Dollar makes a run. It dipped for a bit after the report was released, still, the USD buyers went right back in.
Powell is the New Person in Town
Looking at the statement, Powell looks optimistic and hawkish. He believes the economic outlook is rather strong and I agree. He also recognizes that inflation increased above 2% in the mid-term.
He’s as hawkish as the market was expecting. The market should support the personal income and spending, leading the US Dollar to make the most of it at the moment. Is this the reversal we were waiting for?
Find out.
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