What happened this week

Federal Reserve Chairman Jerome Powell spoke on Tuesday warning that interest rates are likely to continue to rise higher than expected previously. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said in remarks. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.” These remarks left the markets with two impressions; one that the level of fed funds rate hike it likely to be higher than previously indicated and two that the previous, smaller quarter point hike will be short lived. Powell went on to say that the recent economic data showed the the Fed’ s inflation-fighting job is not over yet. 

As a consequence markets began a big sell off Tuesday morning, with the Dow dropping 400 points, S&P down 1.2% and the Nasdaq down 1%. 

In other news; for the first time in seven years the US has a new nuclear reactor. Georgia Power announced that the Volte nuclear reactor unit 3 has started a nuclear reaction inside the reactor. In a written announcement from from Georgia Power, they company has said that the reactor is in “initial criticality” when the nuclear fission process starts splitting atoms and generating heat; this heat causes water to boil  and steam spins a turbine that’s connected  to a generator that creates electricity. “This is a truly exciting time as we prepare to bring online a new nuclear unit that will serve our state with clean and emission-free energy for the next 60 to 80 years,” Chris Womack, CEO of Georgia Power, said. 

Jamie Dimon, CEO of Morgan Stanley spoke on Monday of his biggest economic concerns; citing the war in Ukraine and the US relationship with China. 

Alaska is awaiting President Biden’s decision on a major oil and natural gas development project. The state’s labor union is hoping for the President to approve the plan to build a sustainable “climate future”. The proposal by ConocoPhillips aims to develop energy resources in a small portion of what’s known as the National Petroleum Reserve-Alaska on Alaska’s North Slope. If the project is denied Biden America will likely continue to import oil from Venezuela and the Middle East. 

Looking ahead to this week:

Wed March 8th: ADP Unemployment, US Trade Balance

Thurs Mar 9th: Jobless Claims

Fri Mar 10th: Employment report, US Unemployment Rate, Federal Budget