Powell’s Necktie Is Too Tight—and Investors Love Slack
Powell’s Necktie Is Too Tight—and Investors Love Slack
(Bloomberg) --
Simultaneous pressure from markets and President Donald Trump to lower interest rates makes Federal Reserve Chairman Jerome Powell look like a guy whose necktie is too tight, says Julian Emanuel, chief equity and derivatives strategist at brokerage BTIG. He joins the “What Goes Up” podcast to discuss markets and explain why, despite that pressure, the Fed may not cut rates in July as markets expect.
“Waiting past July sends a message that the Fed is independent of the White House, number one,” Emanuel says. Moreover, it shows the central bank is “independent of what the market is trying to force them to do—with the knowledge that you could still go in September and continue apace.’’
Also joining the podcast is Bloomberg Opinion technology columnist Shira Ovide, who discusses how Slack Technologies Inc. has made its stock-market debut at a time when subscription-based, business-to-business software stocks are hot. “These are companies that investors have fallen in love with,” Ovide says, “kind of to the point of mania.”
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To contact the editor responsible for this story: Topher Forhecz at tforhecz@bloomberg.net, David Rovella
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