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Powell said he cannot see the Stag or the Flation- is he right?

As the final 4pm London FX fix of the weeks draws a little closer, it has been quite a mad afternoon across the markets. First the dollar got whacked on the jobs report and then it came back after the higher prices paid element of the ISM index, defying the weaker index and lower orders in that data. Gold went walk about too, as you all know now. The stock markets are still paring earlier gains that saw the Dow Jones rise to 38,808. On Wednesday evening the Fed Boss was asked about the prospect of Stagflation hitting the US economy. He said he cannot see the Stag or the Flation and that is to quote his words exactly. Well, we have already seen some minor evidence of that earlier this week and that is why Powell was asked that question on Wednesday evening. Today we had more evidence of it. Unemployment rose, the ISM fell as did new orders and prices rose in the services sector quite markedly. All this data has thrown a good deal of confusion across the markets this afternoon and that higher prices paid component has saved the dollar from a deeper fall for the time being. To be honest, all this data is not supportive for further stock market gains, but it remains unclear, if the markets will continue to ignore that heading into the weekend 

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