It wasn't so much what he said, but what he left out.

Very early in the speech, stocks started to sell off, along with gold as the dollar rose when Powell said the Fed still has a very long way to go to get price inflation back to 2%. Peter called that one of the biggest understatements of the year — maybe of the century.

It's not that they have a long way to go. They have an impossible distance to travel. In fact, the route is so far between where we are and where the Fed thinks it's going to get that it's basically a mission impossible. There's no way that the Fed is going to complete this journey."

Powell made some other hawkish statements, reiterating that the central bank is going to remain resolute in the inflation fight. He also emphasized that 2% is the target and that the Fed won't move the goalposts and accept a higher rate.

While the markets initially sold off on the speech, they recovered later in the day.

The markets just totally shrugged it off, which is what the market has been doing. Yes, we've had a decent correction off the highs, but the market has basically held up very well in relation to the carnage in the bond market."

Peter said he expects the bond market carnage to continue and Powell's Jackson Hole speech reinforces the momentum to the downside that we're seeing in bonds.

Peter said the most interesting part of the speech wasn't what Powell said, but what he left out.

The whole point of raising interest rates is to slow down aggregate demand. Raising rates makes borrowing more expensive and theoretically slows down consumption. But Powell never addresses the elephant in the living room — aggregate demand isn't going down.