Peter Boockvara renowned market analyst, recently shared his expectations for the Chairman of the US Federal Reserve Jerome Powell’s upcoming comments and their potential impact on the market.
What happened: Boockvar told CNBC’s “Fast Money” on Thursday that while Powell will acknowledge a September rate cut based on employment data rather than inflation, “he’s not going to tell you 25 or 50 (basis points), and he’s not even going to tell you what he’s going to do after that, because they don’t know.”
“Nvidia will be more important than what Powell says. The economic data was actually more direct to the markets, not in terms of its impact on the Fed, and the earnings of the big names had a much bigger impact on the markets than the Fed.”
Boockvar also emphasized that Nvidia Corp NVDA will cap all of AI trading next week when it releases its latest quarterly results on Wednesday.
See also: 30-year mortgage rates hit 15-month low, but applications fall after recent spikes: Real estate stocks react Wednesday (CORRECTION)
Why it is important: The market has historically been sensitive to Powell’s short-term monetary policy guidance. In 2022, Powell’s proposal for a 75 basis point hike led to a rise in Treasury yields and a fall in stock prices.
Investors are currently awaiting Powell’s speech at the Jackson Hole Economic Symposium as U.S. stocks are lower on Thursday. Market sentiment, as indicated by the CNN Money Fear and Greed Index, remains in the “neutral” zone.
Meanwhile, members of the Federal Reserve have indicated that a possible rate cut could occur. The President of the Boston Fed Susan Collins and President of the Philadelphia Fed Patrick Harker indicated that the central bank could begin cutting interest rates as early as September.
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This story was created with Benzinga Neuro and edited by Pooja Rajkumari
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