Joining us right now is Pria Misra. She is fixed income portfolio manager at JP Morgan Asset Management. And Pria, let's weigh through everything you just heard from these two, what you saw with the numbers.What does JP Pal say tomorrow. How does he tee all of this up. >> So, I think the Fed as well as Chal, they have a really tough job ahead because the dual mandate is intention, right.There's inflation's not at their target and there's inflationary pressures with tariff. Uh even service inflation's higher ...

Fed’s Powell Gives Final Jackson Hole Speech Tomorrow—Here’s What To Watch For On Interest Rates And Morehttps://t.co/V1CxDRkyjf https://t.co/7E9JzlzAYi ...

Monetary Policy & Economic Outlook - The market is focused on the implications of the September 17th events and recent economic data [1] - The speaker interprets recent labor market trends as showing renewed business optimism after initial uncertainty [2][3] - There's a belief that inflation is trending closer to 3% rather than 2%, with the Open Market Committee viewing inflation as a significant risk [4] - Companies have adapted to supply chain disruptions, potentially mitigating the impact of tariffs and other shocks [6][7] - As inflation approaches the dual mandate target, policy rate decisions become more complex [9][10] - The current policy rate is considered modestly restrictive, but the speaker is seeking evidence of economic inhibition [11] - The goal is to achieve a soft landing to 2% inflation without causing economic disruption [12] Federal Reserve Communication & Framework - The Federal Reserve is reviewing its framework, incorporating lessons from the 2020 pandemic cycle, with a focus on improving transmission of its policies [14][15] - A consistent framework is deemed important for collaboration and consensus among the 19 members, while maintaining agility [17][18] - There are ongoing debates about the appropriate level of Federal Reserve communication, balancing transparency with avoiding market speculation [19][20] - The Federal Reserve aims to improve public understanding of its actions and the dual mandate [21] Federal Reserve Independence & Public Perception - The Federal Reserve maintains its independence from political influence, focusing on its economic mandate [22] - The Federal Reserve's credibility is tied to fulfilling its monetary policy responsibilities [25] - Conversations with people in the district provide real-time feedback that informs policy discussions [27] - The Federal Reserve is focused on ensuring safe and sound banks, payment systems, and valuable research [28] - The Federal Reserve differentiates between the understanding of monetary policy by business/finance professionals and the general public, emphasizing the importance of communicating the dual mandate [29][30]

Interest Rate Outlook - Federal Reserve official indicates current interest rates are high [1] - Potential for a 100 basis points (1%) rate cut into 2026 [1]

>> THIS IS "HORIZONS MIDDLE EAST & AFRICA." OUR TOP STORIES THIS MORNING. MARKETS REMAIN IN WAIT AND SEE MODE AS CENTRAL BANKERS GATHERED IN JACKSON HOLE WITH INVESTORS AWAITING REMARKS FROM FED CHAIRMAN JEROME POWELL. FED GOVERNOR LISA COOK SAYS SHE WILL NOT BE BULLIED INTO STEPPING DOWN AS PRESIDENT TRUMP DEMANDS HER RESIGNATION OVER ALLEGATIONS OF MORTGAGE FRAUD.AND ISRAEL IS DOUBLING ITS ARMY RESERVISTS IN THE WAR AGAINST HAMAS IN GAZA, A SIGN THAT PREPARATIONS ARE UNDERWAY FOR A STEPPED-UP OFFENSIVE DE ...

Asahi Mutual has diverted some of its 2025 investment outlay to domestic notes from foreign bonds as Japan’s interest rates rise to attractive levels https://t.co/3y1I4yhsm9 ...

Federal Reserve Policy & Economic Concerns - The Federal Reserve (Fed) is divided, with concerns about tariffs, inflation, jobs, and the labor market [1] - Tariffs may drive inflation, but also hurt jobs, creating conflicting pressures on the Fed regarding rate cuts [2] - More committee members are concerned about inflation and unemployment, but there were two dissents by governors, indicating unusual circumstances [2] - Fed Chair Powell wants more data and to wait before making decisions, increasing the risk of waiting too long [3] - The market anticipates an easing cycle with multiple rate cuts, and Powell may not be able to control this expectation even with a single cut [5] Bond Market Dynamics - There's a divergence in bond markets, with short-term rates (five years and under) driven by central banks and long-term rates driven by fiscal policy [7] - A buyer strike on 30-year bonds exists due to concerns about fiscal policy, which the Fed likely cannot fix [7] Neutral Rate & Monetary Policy Tightness - The Fed funds rate is slightly higher than the 2-year yield, suggesting a moderately tight monetary policy [11] - The Fed's uncertainty about the neutral rate (estimated at 3%) contributes to its reluctance to act quickly [11][13] - The market has priced in an easing cycle with a terminal rate below the neutral rate, but current policy is somewhat tight because the Fed is unsure of the neutral rate [12][13] Powell's Upcoming Speech - Powell is expected to discuss the Fed's challenges and accomplishments since 2018, as well as the Fed's new 5-year framework [8] - Powell is expected to talk very little about policy for the next few meetings [9] - If Powell opens the door to future policy changes, the market will react significantly [10]

Core Insights - The stock of Opendoor Technologies has experienced significant volatility, recently rising over 500% before cooling off, amid concerns about inflation and leadership changes [11][12] - The current inflation rate in the U.S. is 2.7% as of July 2025, which could impact the housing market and Opendoor's business model [1][10] Company Overview - Opendoor Technologies aims to revolutionize the housing industry with an e-commerce model, allowing users to buy and sell homes online [4] - The company purchases homes, typically in good condition or needing minor repairs, and resells them on its platform [4] Financial Performance - Opendoor operates with slim profit margins, needing to balance competitive home purchase offers with profitable resale prices [5] - The company relies on debt to acquire homes, which incurs interest expenses, complicating its financial sustainability [5] Market Conditions - The housing market is currently slow, primarily due to high mortgage interest rates, which are at 6.5% for 30-year loans [9] - Rising interest rates can significantly increase housing payments, making home purchases less affordable [9] Impact of Inflation - If inflation continues to rise, it may lead the Federal Reserve to maintain or increase the federal funds rate, further complicating the housing market for Opendoor [10][12] - The company has previously faced challenges due to rapid interest rate hikes, resulting in substantial losses on unsold inventory [6] Leadership and Future Outlook - The recent resignation of CEO Carrie Wheeler adds uncertainty to Opendoor's future, as the company is already struggling [11][12] - Investors are advised to be cautious and may want to wait for a new CEO and improved business performance before considering investment [13]

Monetary Policy & Economic Impact - Transforming the Fed could lower interest rates [1] - Transforming the Fed could save billions of dollars in interest payments [1] - Transforming the Fed could build market confidence in U S investments and the dollar [1]

Argentina’s economy contracted in June for the fourth month this year just before interest rates soared in July, a slight setback for President Javier Milei before the country heads to midterm elections https://t.co/b3IuHA4XYO ...