Jackson Hole Fallout: Tariff Inflation Crushes USD

Earlier on, I did tell you about the news coming out from the aftermath of the Jackson Hole symposium in which the Fed chairman has hinted of a possible interest rate cut as early as the next FOMC meeting. Which is supposed to take place between September 16 to 17, So he has highlighted two possible things to take note of one is that the labor market in the US is obviously slowing down. After the very sharp downward revision in the may and June numbers and that is a concern because he also explained or rather especially points to slowing down in the US economy and the other thing that he is mostly focused on is the impact of the tariff on inflation and we can see that in the middle of August. We have the producer price index that comes in a lot a lot hotter than expected and for the month of June the producer price index was at 26 percent. Okay and the latest number for July is at 3.7. So there is one percentage point higher than the previous month suggesting that inflation and the wholesale level is becoming very obvious. 

Speaker: Daniel Ang (Sophisticated Trader with 30 yrs exp)