The usual suspects were on financial television this morning boasting that there really isn’t no sign of stagflation and that tariff impacts will not be that bad as inflation is tamed once again. Of course that extends to the Federal Reserve where Governor Waller said on CNBC this morning:
“I think we’re in the position that we could do this as early as July,” Waller said during a “Squawk Box” interview with CNBC’s Steve Liesman. “That would be my view, whether the committee would go along with it or not.”
If one did not know any better, they might thing he’s vying to be Trump’s nominee to replace Jay Powell in 2026 if not sooner. Regardless, the push the narrative crowd has one thing going for it during this massive triple-witching options expiration today and that is the Bank of Japan doing everything they can to weaken the Yen.
If anyone has been watching the roller coaster known as USDJPY since the trade wars began, that has been one’s best guide for what and where the equity markets will go.
This of course works well until the first bombs are dropped from US aircraft on Iran and then the world enters into an entirely different plane of reality. Stay tuned as trading could be quite soft or quite violent depending on the bizarre nature of what our Fed Governors say or geopolitical events which are transpiring by the minute.
