{"id":49627,"date":"2025-08-22T19:53:15","date_gmt":"2025-08-22T23:53:15","guid":{"rendered":"https:\/\/prefblog.com\/?p=49627"},"modified":"2025-08-22T19:53:15","modified_gmt":"2025-08-22T23:53:15","slug":"august-22-2025","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49627","title":{"rendered":"August 22, 2025"},"content":{"rendered":"

Powell gave his anticipated speech at Jackson Hole<\/a>:<\/p>\n

\u201cThe balance of risks appears to be shifting,\u201d Mr. Powell said in his final speech as Fed chair at an annual conference hosted by the Reserve Bank of Kansas City in Jackson, Wyo. With borrowing costs weighing on the economy, the labor market softening and inflation risks contained, \u201cthe shifting balance of risks may warrant adjusting our policy stance,\u201d said the chair.<\/p>\n

Mr. Powell highlighted the recent slowdown in monthly jobs growth, but questioned whether it was a function of a pullback in demand from companies or a reduction in the supply of workers resulting from President Trump\u2019s immigration crackdown. He said that left the labor market in a \u201ccurious kind of balance\u201d that warranted caution.<\/p>\n

\u201cThis unusual situation suggests that downside risks to employment are rising,\u201d he said. \u201cAnd if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.”<\/p>\n

Mr. Powell stressed, however, that inflation was still too high even as he sought to push back on concerns that Mr. Trump\u2019s tariffs would lead to a persistent rise in price pressures. Rather he said a \u201creasonable base case is that the effects will be relatively short lived \u2014 a one-time shift in the price level.\u201d<\/p>\n

\u201cOf course, \u2018one-time\u2019 does not mean \u2018all at once.\u2019 It will continue to take time for tariff increases to work their way through supply chains and distribution networks,\u201d he added.<\/p>\n

Still, Mr. Powell acknowledged that the Fed was in a \u201cchallenging situation\u201d given that the central bank\u2019s two goals of low, stable inflation and a healthy labor market are now in tension with one another. Against this backdrop, he said, the Fed would need to \u201cproceed carefully\u201d with its plans to reduce the degree of restraint it is imposing on the economy.<\/p><\/blockquote>\n

There were, of course, market effects<\/a>:<\/p>\n

Traders boosted bets on a September rate cut after Powell\u2019s comments, now placing a nearly 90% chance of a reduction, versus about 75% before Powell\u2019s remarks.<\/p>\n

The yield on the U.S. 10-year Treasury fell to 4.25% from 4.33% late Thursday. The two-year Treasury yield, which more closely tracks expectations for Fed action, sank to 3.69% from 3.79% in a notable move for the bond market.<\/p>\n

Canada\u2019s two-year bond yield fell to 2.69% from 2.73% earlier in the day. The Canadian dollar rose about half a cent, its largest gain since May 23, reflecting losses in the U.S. dollar. It was trading at 72.34 cents US by late afternoon.<\/p>\n

The Dow Jones Industrial Average rose 846.24 points, or 1.89%, to 45,631.74, surpassing its most recent record close on December 4, 2024. The S&P 500 gained 96.74 points, or 1.52%, to 6,466.91 and the Nasdaq Composite gained 396.22 points, or 1.88%, to 21,496.54.<\/p>\n

The S&P\/TSX composite index ended up 277.70 points, or 0.99%, at 28,333.13, surpassing the record closing high it posted on Thursday. For the week, the index was up 1.53%, its third straight weekly gain.<\/p><\/blockquote>\n

And those rugged free-enterprise Republican types have endorsed state capitalism<\/a>:<\/p>\n

The United States government is making an $8.9 billion investment in Intel common stock, giving the Trump administration a roughly 10% stake in the struggling chipmaker, Intel and the president announced on Friday.<\/p>\n

\u201cIt is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future,\u201d Trump wrote in a Truth Social post on Friday
…<\/b>
The remaining $5.7 billion that Intel had been awarded but not yet granted from the CHIPs and Science Act will fund the equity, along with $3.2 billion that Intel had been promised from the Department of Defense as part of the Secure Enclave program. The government is purchasing 433.3 million shares at a price of $20.47 per share, or a 9.9% stake in the company.
…<\/b>
Trump also said he would do more of these types of deals. His administration has been weighing opportunities to take similar stakes in various US companies in critical industries, two people familiar with the White House discussions on the matter told CNN last week<\/a>.<\/p><\/blockquote>\n

I’m with Tulane University professor Walter Isaacson<\/a> on this one:<\/p>\n

In a recent CNBC interview<\/a>, Tulane University professor Walter Isaacson expressed concern over the precedent. \u201cYou\u2019re seeing state capitalism here, where the government is interfering in all sorts of ways in corporate decisions,\u201d he said.<\/p>\n

Isaacson cautioned that such interventions often evolve into crony capitalism, where favoured companies benefit from political ties rather than market merit.<\/p>\n

\u201cThat is a recipe for not only disaster but just sort of a corrupt sense of messiness,\u201d he added.<\/p>\n

According to the industry expert, direct equity stakes risk undermining free-market dynamics and investor confidence. Note that INTC shares are still down nearly 9.0% versus its year-to-date high.<\/p><\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n6.83 %<\/td>\n7.30 %<\/td>\n35,133<\/td>\n13.10<\/td>\n1<\/td>\n0.0000 %<\/td>\n2,413.4<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1774 %<\/td>\n4,623.1<\/td>\n<\/tr>\n
Floater<\/td>\n6.57 %<\/td>\n6.93 %<\/td>\n42,073<\/td>\n12.57<\/td>\n3<\/td>\n0.1774 %<\/td>\n2,664.3<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.6347 %<\/td>\n3,654.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.79 %<\/td>\n4.87 %<\/td>\n52,455<\/td>\n2.35<\/td>\n7<\/td>\n-0.6347 %<\/td>\n4,363.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.6347 %<\/td>\n3,404.9<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.80 %<\/td>\n3.40 %<\/td>\n91,438<\/td>\n0.08<\/td>\n2<\/td>\n0.1391 %<\/td>\n3,070.9<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.59 %<\/td>\n5.70 %<\/td>\n42,335<\/td>\n14.29<\/td>\n30<\/td>\n0.2521 %<\/td>\n3,348.5<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.66 %<\/td>\n6.24 %<\/td>\n114,951<\/td>\n13.24<\/td>\n37<\/td>\n-0.0048 %<\/td>\n3,001.2<\/td>\n<\/tr>\n
Insurance Straight<\/td>\n5.42 %<\/td>\n5.53 %<\/td>\n55,324<\/td>\n14.52<\/td>\n18<\/td>\n0.1551 %<\/td>\n3,333.7<\/td>\n<\/tr>\n
FloatingReset<\/td>\n5.26 %<\/td>\n5.33 %<\/td>\n37,950<\/td>\n14.87<\/td>\n1<\/td>\n0.0805 %<\/td>\n3,750.6<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.88 %<\/td>\n5.10 %<\/td>\n115,990<\/td>\n2.47<\/td>\n17<\/td>\n0.1575 %<\/td>\n2,630.9<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0048 %<\/td>\n3,067.9<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.26 %<\/td>\n5.64 %<\/td>\n68,780<\/td>\n14.30<\/td>\n15<\/td>\n0.0497 %<\/td>\n3,048.4<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
CU.PR.J<\/td>\nPerpetual-Discount<\/td>\n-6.80 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n
CU.PR.G<\/td>\nPerpetual-Discount<\/td>\n-2.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n
ENB.PR.H<\/td>\nFixedReset Disc<\/td>\n-1.74 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 21.50
\nEvaluated at bid price : 21.50
\nBid-YTW : 6.23 %<\/td>\n<\/tr>\n
PVS.PR.G<\/td>\nSplitShare<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Option Certainty
\nMaturity Date\t: 2026-02-28
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.06
\nBid-YTW : 6.48 %<\/td>\n<\/tr>\n
BN.PF.G<\/td>\nFixedReset Disc<\/td>\n-1.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 21.92
\nEvaluated at bid price : 22.40
\nBid-YTW : 6.56 %<\/td>\n<\/tr>\n
PVS.PR.J<\/td>\nSplitShare<\/td>\n-1.07 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2028-02-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.01
\nBid-YTW : 4.80 %<\/td>\n<\/tr>\n
PVS.PR.H<\/td>\nSplitShare<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2027-02-28
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.09
\nBid-YTW : 5.16 %<\/td>\n<\/tr>\n
PVS.PR.M<\/td>\nSplitShare<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2031-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.55
\nBid-YTW : 4.95 %<\/td>\n<\/tr>\n
BN.PR.M<\/td>\nPerpetual-Discount<\/td>\n1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 20.96
\nEvaluated at bid price : 20.96
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
POW.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.56 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 22.49
\nEvaluated at bid price : 22.75
\nBid-YTW : 5.56 %<\/td>\n<\/tr>\n
PVS.PR.L<\/td>\nSplitShare<\/td>\n1.68 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-06-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 4.87 %<\/td>\n<\/tr>\n
PWF.PR.F<\/td>\nPerpetual-Discount<\/td>\n2.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 22.89
\nEvaluated at bid price : 23.16
\nBid-YTW : 5.72 %<\/td>\n<\/tr>\n
FTS.PR.J<\/td>\nPerpetual-Discount<\/td>\n2.39 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 22.07
\nEvaluated at bid price : 22.30
\nBid-YTW : 5.34 %<\/td>\n<\/tr>\n
PWF.PR.E<\/td>\nPerpetual-Discount<\/td>\n2.64 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 24.19
\nEvaluated at bid price : 24.45
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
CU.PR.D<\/td>\nPerpetual-Discount<\/td>\n3.46 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 21.90
\nEvaluated at bid price : 22.14
\nBid-YTW : 5.55 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
PWF.PR.Z<\/td>\nPerpetual-Discount<\/td>\n207,071<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 22.36
\nEvaluated at bid price : 22.75
\nBid-YTW : 5.70 %<\/td>\n<\/tr>\n
TD.PF.E<\/td>\nFixedReset Disc<\/td>\n155,675<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-10-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.00
\nBid-YTW : 4.26 %<\/td>\n<\/tr>\n
BN.PF.H<\/td>\nFixedReset Prem<\/td>\n66,900<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2025-12-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.24
\nBid-YTW : 4.30 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset Ins Non<\/td>\n65,100<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 18.68
\nEvaluated at bid price : 18.68
\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n
GWO.PR.G<\/td>\nInsurance Straight<\/td>\n54,900<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 23.12
\nEvaluated at bid price : 23.38
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
BN.PR.K<\/td>\nFloater<\/td>\n37,200<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 12.75
\nEvaluated at bid price : 12.75
\nBid-YTW : 6.93 %<\/td>\n<\/tr>\n
There were 9 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
See TMX DataLinx: ‘Last’ != ‘Close’<\/a> and the posts linked therein for an idea of why these quotes are so horrible.<\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\nQuote: 18.26 – 19.90
\nSpot Rate : 1.6400
\nAverage : 1.0489<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 18.26
\nEvaluated at bid price : 18.26
\nBid-YTW : 5.92 %<\/td>\n<\/tr>\n

CU.PR.J<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.00 – 21.99
\nSpot Rate : 1.9900
\nAverage : 1.4945<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 5.97 %<\/td>\n<\/tr>\n

BIP.PR.F<\/td>\nFixedReset Disc<\/td>\nQuote: 23.00 – 25.25
\nSpot Rate : 2.2500
\nAverage : 1.8083<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 22.40
\nEvaluated at bid price : 23.00
\nBid-YTW : 6.68 %<\/td>\n<\/tr>\n

BN.PF.J<\/td>\nFixedReset Disc<\/td>\nQuote: 25.10 – 26.10
\nSpot Rate : 1.0000
\nAverage : 0.6224<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 23.54
\nEvaluated at bid price : 25.10
\nBid-YTW : 6.14 %<\/td>\n<\/tr>\n

CU.PR.G<\/td>\nPerpetual-Discount<\/td>\nQuote: 20.00 – 22.30
\nSpot Rate : 2.3000
\nAverage : 1.9228<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 20.00
\nEvaluated at bid price : 20.00
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n

MFC.PR.L<\/td>\nFixedReset Ins Non<\/td>\nQuote: 23.80 – 24.55
\nSpot Rate : 0.7500
\nAverage : 0.4603<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2055-08-22
\nMaturity Price : 22.78
\nEvaluated at bid price : 23.80
\nBid-YTW : 5.53 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Powell gave his anticipated speech at Jackson Hole: \u201cThe balance of risks appears to be shifting,\u201d Mr. Powell said in his final speech as Fed chair at an annual conference hosted by the Reserve Bank …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-49627","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49627"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49627\/revisions"}],"predecessor-version":[{"id":49628,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49627\/revisions\/49628"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}