Market Watch Dec 8, 2022

Late last Week Powell spoke at the Brookings institute, which felt much like a FOMC event. Powell’s tone was much more dovish talking about actions in the past tense: “We had to raise rates high in order to curb inflation” and “We want to slow demand but not at the cost of destroying the labor market.” Powell also set a bit of forward guidance by saying that they could pause/reduce hikes as soon as the December FOMC meeting.

Important inflation numbers are coming within the next week. If inflation continues to come below expectations, markets could continue to rally to end the calendar year.

Key Events to watch

• Producer Price Index 9/9

• Consumer Price Index (CPI) 3/13