Yeah signaling a min of two 50 basis point hikes just gutted it. The funny part is what the fuck do investors think is going to happen, no rate hikes and we just run to 30% inflation?Aaaaaand... we're red on the day on all indexes.
SPY approaching yesterday's low. I can smell the capitulation phase brewing.
Wasn't it just last week they said inflation was expected to be under control?On top of that:
09:38 (US) Fed's Mester (FOMC voter, hawk): We need to move rates up at a pace to get inflation moving
- Comfortable moving 50 basis points at next couple meetings but will remain data dependent
- Need to see compelling evidence that inflation is moving lower, have NOT seen that yet
- Reiterates neutral is ~2.5%; Will probably have to go above neutral to get inflation down
- We could see another negative GDP print and may need to see unemployment rise
- Do not think Fed policy will put economy into sustained downturn
- Will need to consider selling MBS at some point
They are absolutely powerless and just won't admit it. They know there is no such thing as a soft landing but refuse to pull the band-aid off and just fix shit. They are just letting it bleed until inflation eventually just kills the economy."under control" .. the new "transitory"
Better yet let’s have both!Yeah signaling a min of two 50 basis point hikes just gutted it. The funny part is what the fuck do investors think is going to happen, no rate hikes and we just run to 30% inflation?
They just need to say we are raising rates to 5% to get this under control and let the market take the hit and then we can just begin the healing process.Better yet let’s have both!
We are at what .75%?They just need to say we are raising rates to 5% to get this under control and let the market take the hit and then we can just begin the healing process.
5% probably ain’t enough. They need to big dick this problem and jump straight to 9They just need to say we are raising rates to 5% to get this under control and let the market take the hit and then we can just begin the healing process.
Right around there yeah. Just wait until the new CPI comes out.We are at what .75%?
5 puts on the breaks. Then let the rate slow things down for a quarter and reassess.5% probably ain’t enough. They need to big dick this problem and jump straight to 9
Raising rates would cause bank failures? How so?With how much wealth is being destroyed by the markets right now they may start to make some real headway, it should force people back to work and start delaying retirements. The only part of inflation they can really do anything about is the wage price spiral after all. They (the fed not Brandon) can't do much about Russia and can't do much about China deciding to lock down every other week.
If they went straight to 5% you would see bank failures and the capital markets seize up, we might see some soon as it is.