'We Got What We Needed From This Speech,' Says Citi's Kate Moore

Summary

Citi Wealth CIO Kate Moore reacts to Fed Chair Kevin Warsh's Jackson Hole speech. She views the speech as supportive for equities, citing a resilient economy, a focus on profits, and a reaffirmed 2% inflation target. Moore argues equity earnings momentum can withstand additional Fed rate hikes and expects productivity gains to support equity expectations. She also sees elevated equity market volatility in the fall around policy, earnings, and elections.

• Fed Chair Kevin Warsh's speech highlighted a strong, resilient economy, profits, and the 2% inflation target.
• Moore says the speech delivered what market participants wanted and supports equity market stability.
• September FOMC is seen as a live meeting with hike odds around 50/50.
• Moore believes strong earnings momentum makes equities less sensitive to higher rates.
• She is constructive on productivity growth over the next 12 to 24 months.
• She expects autumn equity market volatility from policy, earnings, and midterm election noise.