No Powell pause… aka: Pow-se. On Wednesday the Fed is expected to hike interest rates by a “jumbo” 75 basis points (or even 100) after August inflation came in hotter than expected. Though it slowed from July, inflation was still up 8.3% from last year. The spooky numbers sent stocks tumbling to their worst day in two years. Analysts expected better results since gas prices fell, but food and rent kept rising. Now investors predict even more pain from the Fed chair, who’s committed to fighting #flation with aggressive hikes.
Up in smoke… Cannabis sales are sparking upward worldwide, but not all sellers are feeling the high. Last quarter, Canadian pot giant Aurora Cannabis saw its revenue drop 8% while losses 5X’d as it struggled to cut costs. In the US, canna-fans are starting to trade down for cheaper greens as inflation kills the buzz. Shares of Canadian cana-rivals Tilray and Canopy are down 50%+ this year as US legalization slows, while Aurora’s down 80%. We’ll see whether Aurora’s sales slumped (as analysts forecast) when it hashes out results tomorrow.