THE OTHER REASON THERE'S NO FED PUT RIGHT NOW
In today's @markets newsletter, I wrote how it's not just inflation that will keep the Fed hiking. It's also that, unlike with past market downturns, there isn't an associated growth scare.
Sub here: bloomberg.com/account/newsle…
In today's @markets newsletter, I wrote how it's not just inflation that will keep the Fed hiking. It's also that, unlike with past market downturns, there isn't an associated growth scare.
Sub here: bloomberg.com/account/newsle…
Part of the reason it seems like the Fed always rides to the rescue of the market, when it goes down, is that there's usually something else going on beyond merely the decline itself. With this latest swoon, that's not really there.
It really is incredible how narrow credit spreads are right now. They were higher in late 2021. They spiked way more in late 2018, as well as the 2015/2016 China stuff.
Often narrow credit are attributed to "liquidity" or "money printing" But the fact that the Fed has signaled its intent to pull back on this stuff, without some attendant move, it would indicate that there is some economic signal here.
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