Jerome Talks. We Don't Listen.
Jerome Powell Keeps Telling Us the Same Thing, But...
Is anyone else tired of financial pundits trying to parse Chairman Powell's statements to make whatever case they want to make? In my opinion, he's been clear than any Fed Chair since I started reading the Wall Street Journal as a teenager.
He said the following to Congress and has reiterated it over and over again in various iterations:
"Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time. The historical record cautions strongly against prematurely loosening policy. We will stay the course until the job is done.”
They will follow the data. They will do what's necessary. They will bring inflation down to 2%. Personally, I feel good that we have a Fed that will do what's necessary to fulfil its mandate:
"The Federal Reserve System has been given a dual mandate—pursuing the economic goals of maximum employment and price stability"
When we are pivoting from loose to restrictive monetary policy, investors and CEOs of public companies should feel reassured that we have a Fed committed to accomplishing its goals.
Similar to my friend1 Jerome, I am always parroting the same advice to our Featured Companies and all public companies: focus on your long-term fundamental strategies, continue to improve your business and communicate your accomplishments effectively. This approach will "win" with the markets over time regardless of the current economic cycle.
Try as best you can to NOT obsess over your stock price. You will drive yourself crazy. Focus on the business. The best way to raise capital is to sell your product and generate sales. If you don't have a product then keep advancing towards commercialization. Build it well and investors will buy in when it's right for their own investment objectives.
At B2i Digital, we work with our "family" of Featured Companies who share this view and help them implement a consistent digital communication strategy with their key stakeholders. If you'd like to discuss this possibility for your company, email david@b2idigital.com
1 I am not actually friends with Jerome Powell, but he seems like the kind of guy that I'd enjoy having a drink with.
