That was then, this is now/Retail comments both high and low

To simplify today and Jay Powell's JH appearance, last year Powell made clear the rate hiking path ahead via 'pain' but what was unclear to the rest of us was to what extent. This year, the end game of rate hikes is here and clear but what is unclear is how long will Powell be tight, to what extent they sustainably want the fed funds rate above the rate of inflation and how low will their balance sheet go. 

With the balance sheet, it fell by another $6.7b in the week ended 8/23 to $8.139b, the smallest in 2 yrs.

There are other central bankers at the JH get together not associated with the Fed. Joachim Nagel, a Governing Council member and head of the Bundesbank said today "It's for me much too early to think about a pause. We shouldn't forget inflation is still around 5%. So this is much too high. Our target is 2%. So there's some way to go." They will hike again in September and we'll see from there but there is a growing number of members that do want to pause thereafter. 

Let's go thru some earnings calls in retail from those that cater to the high end all the way down to the low end. 

JWN, a customer that is more insulated against inflation, has benefited from the rise in stocks and has a good amount of savings reaping high interest rates in CDs and Treasuries.