Quotes of the Day

Following up on Wednesday's post where I suggested that the Fed will step in, as aggressively as needed, should the credit market "need" it.

Here's Peter Boockvar suggesting that -- from the horse's mouth -- that's all (or the first) we should expect, at the moment:

"Basically the Fed is telling us, when we review what Powell just said and what Susan Collins said last week, is that the first help we could get from them would be more liquidity if markets freeze up rather than rate cuts to help the economy, as of now."

And here's Bespoke Investment Group on how the uncertain prospects for rising prices, amid a still strong-enough labor market, may stay the Fed's hand "for some time."

"... we note today that Ford (F) reportedly sent a memo that it plans to raise prices on new vehicles as soon as next month. In a sharp contrast, the CEO of Volkswagen (ADR VWAGY) American operations said today that the OEM plans to keep US prices flat “until at least June”. In other words, there’s a lot of uncertainty about the timeline for how prices will become visible throughout the economy; different businesses have stockpiled different amounts of inputs and finished goods, and the timeline for phasing in price hikes could take a while. That would mean the Fed could be on hold for some time."

And, in summary, on the Fed (Powell's speech on Wednesday):

"...today Chair Powell explicitly indicted tariff policy as driving up inflation and down growth, and his discussion suggested that the FOMC will react more aggressively to inflation than threats to employment. He also made it clear that any attempt to remove him by the President was illegal. Overall this combination reads as materially hawkish, favoring Treasury flatteners, a stronger dollar, and weaker stock prices."