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Yahoo
16 hours ago
- Business
- Yahoo
Jerome Powell Blames Trump Tariffs For Inflation—Analyst Claps Back, Says Fed Is 'Overplaying' The Card
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The Federal Reserve bumped its median forecast for core inflation, which has left analysts divided as some believe that the central bank is overplaying the inflation story, while others say the impact of inflation cannot be overstated. What Happened: Despite acknowledging that inflation data was 'encouraging,' Jerome Powell noted during his press conference on Wednesday that the inflation median forecast has risen from 2.5% forecast in December, 2.8% in March, to 3.1% now. 'That's due to the effects of the tariffs.' Jeffrey Buchbinder, the chief equity strategist, and Jeffrey Roach, the chief economist at LPL Financial, said in their note that 'Inflation's importance to financial markets cannot be overstated.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — They explained, 'Higher inflation can constrain economic growth, tighten financial conditions, drive interest rates higher, and even restrain stock valuations,' adding that it also 'dampens the present value of future earnings and, historically, correlates with lower stock valuations.' However, Jamie Cox, the managing partner at Harris Financial Group, said, 'The Fed continues to overplay the inflation story and isn't paying attention to burgeoning demand weakness.' 'Concerns from the Fed around deteriorating economic conditions and rising inflation remain roughly balanced and potentially keeping Fed policy changes in the abyss for the foreseeable future,' said Charlie Ripley, senior investment strategist for Allianz Investment Management. Northlight Asset Management CIO, Chris Zaccarelli, on the other hand, explained that the Fed was waiting to see if tariffs increase inflation or the jobs market starts to falter, and whichever part of their dual mandate is impacted first will likely guide whichever direction they take, 'although the bias is still toward cutting rates (or at least keeping rates unchanged; not raising rates).' Meanwhile, Eric Teal, CIO at Commercia Bank, said that 'The economy is less rate sensitive, and we believe a significant amount of easing would be required to impact consumer behavior.'Why It Matters: Craig Shapiro, a macro strategist at Bear Traps Report, said in an X post after the conference that 'Powell wasn't as dovish as I would have thought.' He was skeptical of even two rate cuts by the end of the year, saying, 'Frankly it's not even clear to me that he (Powell)is a 2 cuts guy for 2025.'Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Photo courtesy: Domenico Fornas / This article Jerome Powell Blames Trump Tariffs For Inflation—Analyst Claps Back, Says Fed Is 'Overplaying' The Card originally appeared on
USA Today
19 hours ago
- Business
- USA Today
Investors react to US attack on Iran nuclear sites
President Donald Trump on Saturday said that a "very successful attack" on three nuclear sites in Iran had been carried out. In a posting on Truth Social, Trump added, "All planes are safely on their way home" and he ended his posting saying, "Now is the time for peace." Following are comments from some financial and corporate analysts: Mark Spindel, CIO, Potomac River Capital, Washington, DC: "I think the markets are going to be initially alarmed and I think oil will open higher. We don't have any damage assessment and that will take some time. Even though he has described this as 'done', we're engaged. What comes next? I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil. "There's plenty of time to deliberate before markets open on Sunday. I'm making arrangements to talk to a few people tomorrow. We'll get an early indication when the dollar opens for trading in New Zealand. This was such a bold action, though, and it's such a big contrast to the comments about negotiating for the next two weeks." Jamie Cox, Managing Partner, Harris Financial Group, Richmond, Virginia: 'Oil is sure to spike on this initial news but will likely level in a few days. With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal." Mark Malek, Chief Investment Officer, Siebert Investment Officer, Siebert Financial, NYC: "I think it's going to be very positive for the stock market. I believe that on Friday if you'd asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. "So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict. The biggest risk still out there is the Strait of Hormuz. It could certainly change everything if Iran has the capability to close it." Jack Ablin, Chief Investment Officer of Cresset Capital, Chicago: "This adds a complicated new layer of risk that we'll have to consider and pay attention to... This is definitely going to have an impact on energy prices and potentially on inflation as well." (Reporting by Saeed Azhar, Suzanne McGee. Compiled by Peter Henderson and Vidya Ranganathan)
Yahoo
19 hours ago
- Business
- Yahoo
Investors react to US attack on Iran nuclear sites
(Reuters) -U.S. President Donald Trump on Saturday said that a "very successful attack" on three nuclear sites in Iran had been carried out. In a posting on Truth Social, Trump added, "All planes are safely on their way home" and he ended his posting saying, "Now is the time for peace." Following are comments from some financial and corporate analysts: MARK SPINDEL, CIO, POTOMAC RIVER CAPITAL, WASHINGTON DC: "I think the markets are going to be initially alarmed and I think oil will open higher. We don't have any damage assessment and that will take some time. Even though he has described this as 'done', we're engaged. What comes next? I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil. "There's plenty of time to deliberate before markets open on Sunday. I'm making arrangements to talk to a few people tomorrow. We'll get an early indication when the dollar opens for trading in New Zealand. This was such a bold action, though, and it's such a big contrast to the comments about negotiating for the next two weeks." JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA: 'Oil is sure to spike on this initial news, but will likely level in a few days. With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal." MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NYC: "I think it's going to be very positive for the stock market. I believe that on Friday if you'd asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. "So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict. The biggest risk still out there is the Strait of Hormuz. It could certainly change everything if Iran has the capability to close it." JACK ABLIN, CHIEF INVESTMENT OFFICER OF CRESSET CAPITAL, CHICAGO: "This adds a complicated new layer of risk that we'll have to consider and pay attention to... This is definitely going to have an impact on energy prices and potentially on inflation as well."
Yahoo
20 hours ago
- Business
- Yahoo
Investors react to US attack on Iran nuclear sites
(Reuters) -U.S. President Donald Trump on Saturday said that a "very successful attack" on three nuclear sites in Iran had been carried out. In a posting on Truth Social, Trump added, "All planes are safely on their way home" and he ended his posting saying, "Now is the time for peace." Following are comments from some financial and corporate analysts: JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA: 'Oil is sure to spike on this initial news, but will likely level in a few days. With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal." MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NYC: "I think it's going to be very positive for the stock market. I believe that on Friday if you'd asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. "So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict. The biggest risk still out there is the Strait of Hormuz. It could certainly change everything if Iran has the capability to close it." JACK ABLIN, CHIEF INVESTMENT OFFICER OF CRESSET CAPITAL: "This adds a complicated new layer of risk that we'll have to consider and pay attention to... This is definitely going to have an impact on energy prices and potentially on inflation as well." (Compiled by the Global Finance & Markets Breaking News team)
Wall Street Journal
09-05-2025
- Business
- Wall Street Journal
Fed Comments Stir Stagflation Fears
The S-word is making the rounds on Wall Street. Wednesday's interest-rate decision from the Federal Reserve 'formally codified that stagflation pressures are the key challenge' for the central bank, according to Jason Pride, chief of investment strategy and research at Glenmede. 'The Fed isn't pulling any punches on the potential for tariffs to cause stagflation," wrote Jamie Cox, managing partner at Harris Financial Group, adding that trade-policy uncertainty "is too large to ignore." Investors acknowledge that the stagflation prospects leave a pretty tough job for the central bank. 'The Federal Reserve is in a bind,' said Chris Zaccarelli, chief investment officer for Northlight Asset Management in Charlotte, N.C. With economic growth slowing and inflation still high, central bankers' dual mandate is 'pulling them in two opposite directions.'
