On the #FederalReserve hawkish pivot 1/n
It's about the destination now
Forget the speed of rate hikes
Focus on the terminal rate and
how long the Fed must stay there
= how much cumulative pain is needed to crush #inflation
It's about the destination now
Forget the speed of rate hikes
Focus on the terminal rate and
how long the Fed must stay there
= how much cumulative pain is needed to crush #inflation
1/n
Powell: 'If we were to overtighten, we could use our tools to support the economy later on.'
Or in other words, we are willing to risk a #recession to get the 'job done' and push #inflation to target.
Powell: 'If we were to overtighten, we could use our tools to support the economy later on.'
Or in other words, we are willing to risk a #recession to get the 'job done' and push #inflation to target.
1/n
Interesting end to the presser with one journalist stating #equities were up after #FOMC - which was not true -
Powell repeated virtually all hawkish sentences he had made during the press conference. He cares about (tighter) financial conditions, not about equities.
Interesting end to the presser with one journalist stating #equities were up after #FOMC - which was not true -
Powell repeated virtually all hawkish sentences he had made during the press conference. He cares about (tighter) financial conditions, not about equities.
1/n
Equities and risky assets fell, but again there was no capitulation. Death by a thousand cuts.
Equities and risky assets fell, but again there was no capitulation. Death by a thousand cuts.
Yet, we are now really close to a significant and broad-based decline in #inflation numbers, meaning another pivot dream is already in the making.
Join @true_insights_ to learn how to position for this
true-insights.net
Join @true_insights_ to learn how to position for this
true-insights.net
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