Major shifts in the economic landscape won't happen overnight, but rather in fits and starts - movement in rates, inflation and the outlook for Fed over the last few months - especially over the last week — fits that pattern. Powell admitted (what we've been pointing out since long) that the pace of inflation is running too "hot" for Fed to have a reason for cutting rates anytime- however Powell still adds fuel to the "Fed pause with a promise of rate cuts" trade by maintaining the likely next step for policy is still rate cuts, not a hike (?)- validates the time tested theory that Fed is the last to the party and always reactive.
Fits and starts!
Fits and starts!
Fits and starts!
Major shifts in the economic landscape won't happen overnight, but rather in fits and starts - movement in rates, inflation and the outlook for Fed over the last few months - especially over the last week — fits that pattern. Powell admitted (what we've been pointing out since long) that the pace of inflation is running too "hot" for Fed to have a reason for cutting rates anytime- however Powell still adds fuel to the "Fed pause with a promise of rate cuts" trade by maintaining the likely next step for policy is still rate cuts, not a hike (?)- validates the time tested theory that Fed is the last to the party and always reactive.