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The market calls the Fed's bluff
Markets are rarely straightforward.
The Fed dots and commentary from Powell were more-hawkish than anticipated. Initially, the market reaction is what you would expect with the dollar rallying and stocks falling but the market later reversed and is roughly back to pre-Fed levels.
A big reason why is that the bond market simply doesn't believe the Fed's forecasts. It's a reminder that at this time last year the Fed was only forecasting 75 bps in total hikes in 2022.
This tim... Read More
Posted: Dec 14 2022, 20:32
Author Name: forexlive
Views: 110624
