What happened last week…
At the annual Jackson Hole economic policy symposium, Federal Reserve Chairman Jerome Powell said, “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” The next Federal Open Market Committee meeting takes place on September 16-17. According to the CME FedWatch Tool, as of August 22, there is an 83.1% probability that rates will be reduced for the first time since December 2024.
Meeting minutes were released from the July decision where interest rates were left unchanged at 4.25% to 4.50%. That meeting saw for the first time in more than 30 years multiple Fed governors dissent in favor of a rate cut. According to the minutes, “Participants generally agreed that the upside risk to inflation and the downside risk to employment remained elevated.”
According to the CNBC Fed Survey, respondents believe that President Donald Trump is likely to appoint economic advisor Kevin Hassett as the next Federal Reserve Chairman. However, when asked who should be picked for the role, the top choice was former Fed Governor Kevin Warsh, followed by Fed Governor Christopher Waller and former St. Louis Fed President James Bullard.
Alphabet(GOOG) has secured a six-year cloud contract worth more than $10 billion with Meta Platforms(META). Reportedly, the deal centers around artificial intelligence infrastructure as Meta continues to deploy capital in building out the segment.
Existing home sales for July beat expectations (3.92 million) as it increased to 4.01 million from 3.93 million. Sales rose 2%.
Happening this week…
Nvidia will report earnings this week which investors will be watching closely.
On Monday, new home sales for July are expected to increase to 630,000 from 627,000, which was an increase from the previous reading (623,000).
On Thursday, the GDP growth rate(second estimate) for Q2 2025 is expected to match the first estimate of 3.0%. The first estimate was higher than the Q1 2025 reading.
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- The Rockline Team
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