Powell speech today could either calm or scare Wall Street


All eyes are on Federal Reserve Chairman Jerome Powell, whose speech today could directly impact both Wall Street and Main Street.

If Powell doesn't signal that aggressive rate cuts are coming, market researcher James Bianco says the market won't like it.

“We could see another plunge in rates. We could see further movement down in yields and the yield curve and more volatility and problems in the markets. He should move aggressively,” the Bianco Research president said Friday on CNBC.

Samuel Rines at Avalon Advisers told KTRH says Powell has to be careful with his words.

"It's a very delicate balance for him. He doesn't want to signal that the economy is falling off a cliff. But he does need to signal that more stimulus is coming," Rines said.

The President will be watching, and he wants more aggressive cuts.

"The Fed should be cutting," President Trump said earlier this week.

The thought behind the President's logic is that the more aggressive the cut, the more it would stimulate the economy. A trio of central banks around the world have already made aggressive cuts.


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