Jerome Powell has “never really seen” current supply chain issues
Jerome Powell says he has “never really seen” the current level of supply chain issues at a listening session on Friday, which could explain the Fed chair’s recent dovish stance.
*POWELL: `NEVER REALLY SEEN' THESE KIND OF SUPPLY-CHAIN ISSUES— zerohedge (@zerohedge) September 24, 2021
His remarks come days after consensus was reached that labour markets have sufficiently recovered to allow for support to be withdrawn.
Powell has not made any additional comments on his monetary outlook, which he put forward a couple of days ago at a Fed meeting.
US equities post back-to-back rallies with Fed meeting in rear view mirror. Read more in the 1% Move report: https://t.co/P5SfiG17rX— Jonathan Price (@JonathanPriceMS) September 24, 2021
September’s meeting finished with the Fed alluding to its readiness to taper its asset purchasing, adding that an announcement could come when the committee meets next in November.
Investors could welcome tapering measures at this point as inflation threatens to spiral out of control.
My portfolio— Jerome Powell (@alifarhat79) September 17, 2021
2 weeks ago: Now: pic.twitter.com/eUkDcLhNr4
Going back to supply chain issues, Nike’s share price is down by over 6% on Friday, as the sportswear brand cited a broken supply chain.
NAILED IT: BTIG analyst Camilo Lyon absolutely called the supply chain issues mounting at Nike on @YahooFinance a full 10 days before the company officially dialed back production numbers on its earnings call $NKE down 6.5%https://t.co/jM15jPK2BY https://t.co/s3xawdnHaZ— Zack Guzmán (@zGuz) September 24, 2021
Nike said the supply issues, including container and worker shortages, caused around the world by the pandemic, could impact its production and delivery of goods up to next spring.
"We are not immune to the global supply chain headwinds that are challenging the [manufacturing] and movement of product around the world," Chief Financial Officer Matthew Friend said on an earnings call.
Those hoping for a pair of Nike trainers for Christmas could be out of luck.
It's almost as if shutting down the entire world was a stupid idea https://t.co/NrmKs38UJx— NotStaticAge (@NotStaticAge_) September 24, 2021
Please some one tell Powell , Companies are waiting for raw material prices to go down to produce . supply chain issues came from high raw material prices. high prices are results of direct fed policies...— K Oliver (@oliver1437) September 24, 2021
Supply chain issues are truly a global phenomenon it would seem.
The UK is bracing for empty shelves over the winter period, which many steadfastly attribute to Brexit.
In other news from the plane, Boris Johnson admits that supermarket shelves could be empty for MONTHS due to supply chain issues. 🎄https://t.co/PXOPMk9Bd0— Pippa Crerar (@PippaCrerar) September 19, 2021
While away from the UK, there is a shortage of HGV drivers in New Zealand.