Nice post. It's amazing how we assumed the FED already pivoted 7 months ago but they haven't cut rates once yet haha. Just imagine what markets will look like once they do! Assuming no recession of course.
Many thanks for your comments, Christos. The Fed intentionally uses its words to influence the market the way they want to so the talk does the monetary action for them! The Fed talk and market rally ended up countering the tightness from interest rates - not sure the Fed would have guessed this one!
Many analysts (including at the Fed) keep talking about a latency effect of Fed policies (rate hikes still working their way through the economy), but I would agree that the economy has already adjusted to higher rates (which aren’t that high in even medium-term perspective).
Nice post. It's amazing how we assumed the FED already pivoted 7 months ago but they haven't cut rates once yet haha. Just imagine what markets will look like once they do! Assuming no recession of course.
Many thanks for your comments, Christos. The Fed intentionally uses its words to influence the market the way they want to so the talk does the monetary action for them! The Fed talk and market rally ended up countering the tightness from interest rates - not sure the Fed would have guessed this one!
Who could have!? It’s easy to clown on the FED, but I for sure would not want to have Jerome Powell’s Job! =]
Agreed 😉
Many analysts (including at the Fed) keep talking about a latency effect of Fed policies (rate hikes still working their way through the economy), but I would agree that the economy has already adjusted to higher rates (which aren’t that high in even medium-term perspective).
Enjoyed this. Nicely done!
Thanks so much, MarketLab 🙏🏻🙌!!