DoubleLine Portfolio Manager Jeff Mayberry is joined on Monday Morning Minutes by Quantitative Analyst Eric Dhall to recap the market week of Jan. 30-Feb. 3 as well as January performance. But most important, the two break down the Federal Open Market Committee meeting and Fed Chair Jerome H. Powell’s press conference as the Topic of the Week (16:16). The hike of 25 bps didn’t impact the markets too much, note Jeff and Eric, who speculate that Powell’s dovish demeanor might have stoked optimism in contrast to a hawkish tone more apparent in the transcript of his speech. The two also run through Powell’s Q&A (19:47), with topics including how the Fed interprets financial conditions, the state of the disinflationary process, “super-core” inflation and housing services, and stop-and-go rate hikes. QT was actually brought up in a question about the debt ceiling, with Powell’s deft dodge of the subject drawing praise from Jeff (26:30).
In their market coverage, Jeff and Eric run down a pretty volatile week that followed a pretty good January (1:45). In Macro Land (6:30), a rich week of data included negative housing and manufacturing prints alongside historically healthy labor market numbers, which could further complicate Fed moves in its inflation fight. Looking ahead (28:51), next week will be light on data, but a sit-down with Bloomberg News will provide Powell a chance to rewrite (if necessary) his FOMC remarks.
