NEW FED CHAIR KEVIN WARSH TAKES OVER โ Pledges to Follow 'Best of the Fed's Traditions'
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A NEW ERA AT THE FEDERAL RESERVE
Kevin Warsh has officially begun his four-year term as Federal Reserve chairman, pledging to follow "the best of the Fed's traditions" in a note to staff .
Who is Kevin Warsh?
ยท Former Fed Governor (2006-2011) ยท Served under George W. Bush at the White House ยท Stanford University fellow ยท Considered MORE HAWKISH on inflation than Jerome Powell
His first tasks:
ยท Navigate the Fed's response to rising inflation (CPI at 3.7% โ highest in nearly 3 years) ยท Manage expectations around rate policy (markets pricing 36%+ chance of rate hike in December) ยท Address the Fed's relationship with the Treasury and White House
What he's facing:
ยท PCE inflation data on Thursday ยท Jobs report on Friday ยท His first policy meeting as Chair on June 16-17
Warsh has signaled he wants to pursue a "comprehensive reform agenda," believing the Fed has strayed from its mission .
๐ Do you think Kevin Warsh will be a good Fed Chair? Type "YES" or "NO" in the comments.
BROADCOM REPORTS AFTER THE CLOSE โ Second-Largest US Chipmaker Faces Its Biggest AI Test $BNB
ANOTHER CHIP GIANT REPORTS TODAY
Broadcom (AVGO) reports quarterly earnings after the market close on Wednesday โ and investors will be watching closely .
Why this matters:
1. THE NVIDIA HALO EFFECT โ Nvidia's blowout results have lifted the entire semiconductor sector. Broadcom shares have already risen 14% in the past four sessions .
2. AI INFRASTRUCTURE SPENDING โ Broadcom is a key supplier of networking chips and custom AI accelerators. Its results will offer clues on whether AI infrastructure spending remains robust.
3. VALUATIONS ARE EXTENDED โ The Philadelphia SE Semiconductor Index has surged more than 60% from March lows. Broadcom needs to deliver.
What analysts expect:
ยท Strong demand for AI-related networking chips ยท Continued growth in custom silicon for hyperscalers ยท Forward guidance will be critical
Also reporting:
ยท Palo Alto Networks & CrowdStrike โ Cybersecurity ยท Hewlett Packard Enterprise โ AI server demand
๐ Do you own Broadcom stock? Type "AVGO" in the comments if you're watching this report.
US JOB MARKET ON FIRE: Job Openings Surge to 761,800 โ Highest Level in Nearly 2 Years
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THE LABOR MARKET REMAINS EXTREMELY STRONG
US job openings jumped to 761,800 in April โ FAR above expectations of 686,600 โ reaching the highest level in nearly two years .
The numbers:
ยท Job openings: 761,800 (vs 686,600 expected) ยท March openings revised up: from 688,700 to 692,000 ยท Layoffs fell to 169,200
Why this matters for YOUR money:
1. RATE CUTS ARE LESS LIKELY โ A strong job market gives the Fed room to keep rates higher for longer. Markets are now pricing a 36%+ chance of a RATE HIKE in December.
2. WAGE PRESSURE REMAINS โ Tight labor markets typically lead to higher wage growth, which feeds into inflation.
3. FED CHAIR WARSH IS WATCHING โ This is Kevin Warsh's first major data test as Fed Chair. He pledged to follow "the best of the Fed's traditions" in a note to staff .
Also this week:
ยท Friday: May jobs report โ the main economic event of the week ยท Wednesday: ADP private payrolls (expected ~100,000) ยท Wednesday: Broadcom earnings after the bell
๐ What's your prediction for Friday's jobs report โ HOT or COLD? Type your answer in the comments.