Good afternoon and welcome to Markets Desk, your midday read on what's moving markets and policy.
The Iran peace deal is dominating the macro conversation today. President Trump is pushing back hard against critics from both flanks — Iran hawks and antiwar Democrats alike — pointing to falling gas prices, now below four dollars a gallon, as validation. The framework commits both sides to sixty days of further talks and includes a three hundred billion dollar reconstruction package for Iran, a figure drawing significant scrutiny.
Shifting to monetary policy, Federal Reserve Chair Kevin Warsh has signaled he wants to take market signals more seriously in guiding rate decisions — a posture that sounds accommodating on the surface. But strategists at Morgan Stanley are sounding a quiet alarm, warning that markets may not enjoy the responsibility of being in the driver's seat as much as they think, particularly with rate hike risk still alive in some corners of the Street.
Meanwhile, gold is steadying after a steep selloff triggered by that hawkish Fed tone. Prices are finding modest footing Thursday as easing geopolitical tensions from the Iran deal provide some offset, though a stronger dollar and elevated Treasury yields continue to cap any meaningful recovery in the precious metal.
That's the tape. Markets Desk, signing off the floor.
