CNBC's "Fast Money" Yields rise on rate hike comments 8/25/23
Aug 25, 2023
Fast Money traders discuss Fed Chair Powell's warning of potential rate hikes and the surprising rise in stocks. They analyze the factors affecting the Fed's decision making, including inflation and growth. They also explore the impact of tightening monetary policy on the labor market and consumer spending, as well as the challenges faced by companies like Nike due to weaker China spending. Additionally, they debate the advantages and potential drawbacks of Zillow's 1% down payment program for home buyers and discuss investment opportunities in Pfizer, Palantir, and Zillow.
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Powell's Warning & Data Dependency
- Fed Chair Powell warns of potential further rate hikes due to high inflation.
- He emphasizes data dependency, citing economic growth, inflation trends, and labor market tightness as key factors.
Fed's Housing Focus
- Steve Grasso questions the Fed's focus on the recovering housing sector while existing home sales plummet.
- Steve Liesman explains the Fed's perspective, emphasizing their focus on owner's equivalent rent as a key indicator.
Focus on Jobs Report
- Stuart Kaiser advises focusing on the jobs report, as the Fed needs to see labor market weakness to confirm tightening effectiveness.
- He notes that even a slight easing of inflation in the coming months might not be enough to prevent further rate hikes.