Jackson Hole week is often used as a policy bull horn

It is clear that the market is taking some froth off the top of several recently over-bullish areas (everything from Palantir/AI to MP Materials/REE are taking haircuts) and it is doing it with fear of the Fed as rationale. This could paint the current market turbulence in these and other areas as brief, depending on what comes out of the Fed’s orifice at week’s end.

The Fed has traditionally used this getaway as a pulpit from which to hint about coming policy. With slipping economic signals (everything from employment to commercial real estate) continuing apace, I don’t think that the inflation jitters instigated by last week’s PPI report will stack up against the decelerating economy. That report was not inflation, after all. It was the effects of fiscal (tariff/trade) policy.