Good morning and welcome to Markets Desk.
Federal Reserve Chairman Kevin Warsh is facing a credibility test, and Wall Street is watching closely. Warsh has spoken forcefully about his commitment to fighting inflation, but his failure to signal any near-term rate action following Wednesday's hold decision has investors questioning whether the rhetoric matches the resolve. The bond market will be the tell.
Shifting to energy, natural gas prices edged lower Friday as EIA inventory data showed stockpiles running more than six percent above their five-year seasonal average. That supply cushion is keeping a lid on prices heading into late summer, and absent a meaningful demand catalyst, the path of least resistance remains to the downside.
And in a story that cuts across politics and the courts, President Trump publicly broke with his own U.S. Attorney Jeanine Pirro after her office moved to drop charges against former Olympian David Hearn. Pirro's court filing acknowledged the Reflecting Pool damage stemmed from botched installation, not vandalism, directly contradicting the President's public claims and creating an unusual rift within his own administration.
That's the tape. Markets Desk, signing off the floor.
