Powell may discuss impact of Fed policy on emerging markets.
As popularized in Michael Lewis’s “Liar Poker,” “equities in Dallas” is a derisive term, referring to a low-rung position in the investment banking world where a wayward employee could be sent. (It’s even in the Urban Dictionary.)
Yet “equities in Dallas” also could be the shorthand for Federal Reserve Chairman Jerome Powell’s address Wednesday night, as Dallas is the location for a speech officially titled, “Global Perspectives.”
Since Powell’s remarks about the Fed being “a long way from neutral” in late October, the Dow Jones Industrial Average has dropped about 5%. That’s coincided with other concerns besides interest-rate policy, of course, ranging from U.S. trade policy to a gridlocked Congress to overseas worries ranging from China to Italy.
Powell has talked about the impact of Fed policy on emerging markets since before he becomes chairman.
He could use the speech alongside Dallas Fed President Robert Kaplan slated for 6 p.m. Eastern to discuss the implications of Fed hikes on the global economy — as well as the possible blowback the U.S. economy could then see, said Scott Brown, chief economist at Raymond James.