RUSH TRANSCRIPT Hi everybody ░░░░░░░░ am Brian Sullivan Hope ░░░░░░░░ re having a great ░░░░░░░░ We are going to ░░░░░░░░ to all those stories ░░░░░░░░ First up the hawks ░░░░░░░░ the roost at the ░░░░░░░░ This may be a ░░░░░░░░ thing for your money ░░░░░░░░ least for now The ░░░░░░░░ had the moment they ░░░░░░░░ been waiting for Fed ░░░░░░░░ Powell delivering his speech ░░░░░░░░ at the Jackson hole ░░░░░░░░ Unlike a lot of ░░░░░░░░ feds that you hear ░░░░░░░░ this time there was ░░░░░░░░ ambiguity We are prepared ░░░░░░░░ raise rates further if ░░░░░░░░ And intend to hold ░░░░░░░░ at a restrictive level ░░░░░░░░ we are confident that ░░░░░░░░ is moving sustainably down ░░░░░░░░ our objective As is ░░░░░░░░ the case we are ░░░░░░░░ by the stars under ░░░░░░░░ skies You could actually ░░░░░░░░ that It s bizarre ░░░░░░░░ when Powell gets aggressive ░░░░░░░░ fall Remember his the ░░░░░░░░ hole last year They ░░░░░░░░ trigger a two month ░░░░░░░░ shellacking for stocks Today ░░░░░░░░ different story Stocks rose ░░░░░░░░ ending a week of ░░░░░░░░ gains Powell hardly alone ░░░░░░░░ his stance here is ░░░░░░░░ fed president Austin goolsby ░░░░░░░░ with stead earlier I ░░░░░░░░ uncomfortable declaring victory when ░░░░░░░░ is clearly not victory ░░░░░░░░ stated before we got ░░░░░░░░ this what the target ░░░░░░░░ going to be I ░░░░░░░░ took do not feel ░░░░░░░░ can change or inflation ░░░░░░░░ until you have hit ░░░░░░░░ We would hope so ░░░░░░░░ you can see the ░░░░░░░░ still have a tough ░░░░░░░░ ahead Despite the rates ░░░░░░░░ up over the last ░░░░░░░░ and a half Inflation ░░░░░░░░ it is coming down ░░░░░░░░ least according to the ░░░░░░░░ the Fed is still ░░░░░░░░ above that 2 target ░░░░░░░░ fed president did not ░░░░░░░░ words in her sit ░░░░░░░░ with Steve Will be ░░░░░░░░ diligent about this We ░░░░░░░░ come a long way ░░░░░░░░ we do not want ░░░░░░░░ be satisfied because inflation ░░░░░░░░ too high We need ░░░░░░░░ see more evidence to ░░░░░░░░ assured that it is ░░░░░░░░ down in a sustainable ░░░░░░░░ And in a timely ░░░░░░░░ All right Let s ░░░░░░░░ to why you are ░░░░░░░░ watching all of this ░░░░░░░░ begin with All of ░░░░░░░░ bed speak put it ░░░░░░░░ What does it actually ░░░░░░░░ for your money and ░░░░░░░░ economy Let s kick ░░░░░░░░ tonight Onset with us ░░░░░░░░ edmonds strategist at new ░░░░░░░░ well And danielle booth ░░░░░░░░ and strategist at q ░░░░░░░░ research Danielle I do ░░░░░░░░ know how old you ░░░░░░░░ I m not would ░░░░░░░░ But I think we ░░░░░░░░ all probably about the ░░░░░░░░ age I am 29 ░░░░░░░░ are 29 I 52 ░░░░░░░░ we go If we ░░░░░░░░ a natural lifespan god ░░░░░░░░ Will we ever see ░░░░░░░░ 2 inflation target hit ░░░░░░░░ know Brian I think ░░░░░░░░ will But I think ░░░░░░░░ you really have to ░░░░░░░░ back and consider is ░░░░░░░░ he gave the entire ░░░░░░░░ community the heisman today ░░░░░░░░ saying that is going ░░░░░░░░ be two not three ░░░░░░░░ have been several proposals ░░░░░░░░ that they should raise ░░░░░░░░ target so that higher ░░░░░░░░ longer did not have ░░░░░░░░ last so long And ░░░░░░░░ said no He said ░░░░░░░░ I am ready for ░░░░░░░░ Brian Laughter I think ░░░░░░░░ truly will get the ░░░░░░░░ You definitely are a ░░░░░░░░ by saying that Which ░░░░░░░░ really appreciate danielle Ben ░░░░░░░░ a money manager did ░░░░░░░░ get what you wanted ░░░░░░░░ of Powell today Does ░░░░░░░░ make you feel calm ░░░░░░░░ are going to keep ░░░░░░░░ rates but at least ░░░░░░░░ know It was clear ░░░░░░░░ it does leave the ░░░░░░░░ open We call it ░░░░░░░░ with a lot of ░░░░░░░░ Basically he can hold ░░░░░░░░ thank you yes the ░░░░░░░░ strong and we can ░░░░░░░░ step back and leave ░░░░░░░░ unchanged or cut rates ░░░░░░░░ to watch this If ░░░░░░░░ does get weaker maybe ░░░░░░░░ can keep rates on ░░░░░░░░ Maybe with more fats ░░░░░░░░ re going to get ░░░░░░░░ to stay here where ░░░░░░░░ are If you re ░░░░░░░░ with high rates Do ░░░░░░░░ expect them to raise ░░░░░░░░ again at the next ░░░░░░░░ And if so would ░░░░░░░░ keep a pretty good ░░░░░░░░ rally this year going ░░░░░░░░ I think the market ░░░░░░░░ fairly right that they ░░░░░░░░ leave lift one more ░░░░░░░░ the rates That we ░░░░░░░░ to get the 2 ░░░░░░░░ in the future That ░░░░░░░░ actually giving comfort to ░░░░░░░░ market to say if ░░░░░░░░ do then it means ░░░░░░░░ the future you can ░░░░░░░░ rates Not support for ░░░░░░░░ markets You know danielle ░░░░░░░░ you re from Texas ░░░░░░░░ will say this Rate ░░░░░░░░ are kind of like ░░░░░░░░ in a way You ░░░░░░░░ not know that you ░░░░░░░░ done too much until ░░░░░░░░ is too late And ░░░░░░░░ you are sick And ░░░░░░░░ do worry that because ░░░░░░░░ lag between raising rates ░░░░░░░░ when things actually slow ░░░░░░░░ is so aggressive Why ░░░░░░░░ t We just pause ░░░░░░░░ a couple of months ░░░░░░░░ for a couple of ░░░░░░░░ Wait and see Because ░░░░░░░░ I do not know ░░░░░░░░ anybody knows what can ░░░░░░░░ when Powell eventually stops ░░░░░░░░ to the punch bowl ░░░░░░░░ do not think any ░░░░░░░░ us know There are ░░░░░░░░ There are consequences And ░░░░░░░░ are seeing it play ░░░░░░░░ in the Fed s ░░░░░░░░ data A baking survey ░░░░░░░░ have gone an entire ░░░░░░░░ now Brian with tightening ░░░░░░░░ standards Quite a big ░░░░░░░░ Got data on our ░░░░░░░░ the market close today ░░░░░░░░ have declined They have ░░░░░░░░ by 8 over the ░░░░░░░░ of one year The ░░░░░░░░ I bring this up ░░░░░░░░ because you are talking ░░░░░░░░ pausing on rate hikes ░░░░░░░░ nobody is asking Powell ░░░░░░░░ the balance sheet And ░░░░░░░░ continues to decline What ░░░░░░░░ think was more important ░░░░░░░░ was what he did ░░░░░░░░ mention and that is ░░░░░░░░ balance sheet and the ░░░░░░░░ he is going to ░░░░░░░░ pulling liquidity out of ░░░░░░░░ system perhaps even after ░░░░░░░░ begins lowering rates in ░░░░░░░░ Excellent point I think ░░░░░░░░ your point danielle what ░░░░░░░░ all the headlines the ░░░░░░░░ sheet may be more ░░░░░░░░ Ben put that into ░░░░░░░░ speed for our audience ░░░░░░░░ reducing the balance sheet ░░░░░░░░ what they have bought ░░░░░░░░ the last couple of ░░░░░░░░ What could that mean ░░░░░░░░ interest rates stocks and ░░░░░░░░ of the market that ░░░░░░░░ One experience with that ░░░░░░░░ they did do that ░░░░░░░░ 2018 the market like ░░░░░░░░ said went too far ░░░░░░░░ pull too much liquidity ░░░░░░░░ of the system and ░░░░░░░░ causes friction So what ░░░░░░░░ Fed is doing currently ░░░░░░░░ on autopilot pulling money ░░░░░░░░ out of the system ░░░░░░░░ selling Automatic selling if ░░░░░░░░ could think of it ░░░░░░░░ way with treasury bonds ░░░░░░░░ the money to the ░░░░░░░░ and now in reverse ░░░░░░░░ autopilot At some point ░░░░░░░░ going to hit a ░░░░░░░░ of liquidity in the ░░░░░░░░ where the market says ░░░░░░░░ is enough It will ░░░░░░░░ otherwise let s say ░░░░░░░░ in funding and friction ░░░░░░░░ the stock market It ░░░░░░░░ the oil that keeps ░░░░░░░░ market engine going Exactly ░░░░░░░░ is oil At some ░░░░░░░░ the engine starts sputtering ░░░░░░░░ it doesn t work ░░░░░░░░ the way danielle we ░░░░░░░░ to go But oil ░░░░░░░░ back on 80 bucks ░░░░░░░░ barrel That complete economic ░░░░░░░░ but we will save ░░░░░░░░ for another night Danielle ░░░░░░░░ Booth Were seeing come ░░░░░░░░ line You saw that ░░░░░░░░ Either way we got ░░░░░░░░ week to college football ░░░░░░░░ are almost there Danielle ░░░░░░░░ Booth thank you no ░░░░░░░░ go hoagies Ben Emons ░░░░░░░░ you very much Here ░░░░░░░░ your studs and duds ░░░░░░░░ the week Stud is ░░░░░░░░ popping nearly 11 The ░░░░░░░░ decline or was dollar ░░░░░░░░ Now 87 sent tree ░░░░░░░░ next a big name ░░░░░░░░ at a