Limit Up! 23rd July 2025

Ian Reynolds July 22, 2025

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Overnight

overnight

Economic Indicators Released Overnight

Not much data but speakers by the dozen;

Jerome Powell (Federal Reserve Chair)

Avoided talking about monetary policy or interest rates, during remarks at the Fed’s regulatory conference—respecting the blackout period ahead of the July 29–30 FOMC meeting.
Said the Fed is open to stakeholder feedback on banking regulations—focusing solely on enhancing the capital framework for large banks.
Reiterated the priority is a “safe, sound, efficient banking system”, leaving current interest rate decisions untouched and deferred until the meeting.

Michelle “Miki” Bowman (Vice Chair for Supervision, Fed)

In a CNBC interview, emphasised that central bank independence in monetary policy is “very important”.
Advocated for transparency, accountability, and inclusive policymaking that includes diverse perspectives.
Highlighted her ongoing regulatory reform agenda—balancing economic growth and safety.

Andrew Bailey (Governor, Bank of England)

Told the UK Treasury Committee that rising UK government borrowing costs are part of a global trend, not a UK-specific issue.
Linked the uptick to global trade policy uncertainties, including US tariffs and fiscal worries.
Defended banking regulations like ring‑fencing, insisting they’re essential for financial stability, though open to technical tweaks to support growth.
Dismissed Finance Minister Reeves’s comment calling regulations a “boot on the neck of business,” cautioning against compromising stability.

And....

Treasury Secretary Scott Bessent on X

Today in a CNBC interview, I called for a review of the Federal Reserve. It is my belief that the central bank should conduct an exhaustive internal review of its non-monetary policy operations. Significant mission creep and institutional growth have taken the Fed into areas that potentially jeopardize the independence of its core monetary policy mission.

As I have said many times, the Fed’s conduct of monetary policy “is a jewel box” that should be walled off to preserve its independence. This independence is a cornerstone of continued U.S. economic growth and stability.

However, this autonomy is threatened by persistent mandate creep into areas beyond its core mission, provoking justifiable criticism that unnecessarily casts a cloud over the Fed’s valuable independence on monetary policy.

While I have no knowledge or opinion on the legal basis for the massive building renovations being undertaken on Constitution Avenue, a review of the decision to undertake such a project by an institution reporting operating losses of more than $100 billion per year should be conducted.

The Fed does regular reviews of its monetary policy framework. I would urge Fed leadership to similarly undertake, publish and implement a comprehensive institutional review across its entire mission to buttress its credibility. It will go a long way towards strengthening the Fed’s credibility with the American people on its core mission of guiding our nation’s monetary policy.

Equity markets mostly at all time highs but no momentum at the moment.

us equities