ARCA:GBTC - Post Discussion
Post by
thegreenmile656 on Dec 14, 2022 4:22pm
Another Big Reversal FOMC Day: Markets Call Fed's Bluff
https://www.zerohedge.com/markets/markets-swing-wildly-hawkish-powell-pummels-pause-narrative-then-opens-door
Another Big Reversal FOMC Day: Markets Call Hawkish Fed's Bluff
by Tyler Durden
Wednesday, Dec 14, 2022 - 04:00 PM
The day started off with a drop in import and export price inflation. But that was just a side-show as stocks limped higher into the main event.
Then The Fed and Powell's presser smashed the vase of fantasy on the ground of reality with a hawkish statement and projections and an even more hawkish Powell.
• POWELL: LABOR MARKET REMAINS EXTREMELY TIGHT
• POWELL: A RESTRICTIVE POLICY STANCE LIKELY NEEDED FOR SOME TIME
• POWELL: NEED SUBSTANTIALLY MORE EVIDENCE OF LOWER INFLATION
• POWELL: FED STILL HAS SOME WAYS TO GO ON RATE HIKES
• POWELL: STANCE ISN'T YET RESTRICTIVE ENOUGH EVEN W/ TODAY'S MOVE
• POWELL: NO RATE CUTS UNTIL CONFIDENT INFLATION MOVING TOWARD 2%
• POWELL: WILL HAVE TO HOLD RESTRICTIVE RATES FOR SUSTAINED TIME
All of which sent rate-hike expectations surging, but they gave back some of that hawkishness as Powell spoke...
Source: Bloomberg
The market is now pricing in rates being lower than current rates by Jan 2024...
Source: Bloomberg
The market is not buying what The Fed is selling...
Source: Bloomberg
The markets did their usual thing - jerking one way on the statement, then swinging all the way during the press conference which was as usual full of contradictions...
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