ShokWaveRider
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Still banking (pun intended) on 25bps
A few bank runs doesn't solve the inflation issue, but to try to show understanding that rates going up so fast can cause problems, they will switch to 25 BPs. If more banks don't need rescuing, probably 25 at the next meeting. If inflation shows signs of coming down, than maybe the pause at that point.
cd : O)
I think he'll use some variation of "The Fed will continue to be data driven" at least five times between his speech and in the Q&A.
For all those that were correct, your prize is knowing that you were right all along. Those that stuck with their initial vote of .25bps and did not flip flop along the way are the ONLY ones entitled to this prize. Congratulations to all those folks of whom I am one. Your/our lives as prognosticators is just beginning.
What I found interesting was in the press conference, Powell alluded to probable credit restrictions that could come out of the banking mess. He said they factored those into their decision and that they acted in the same way as increases in interest rates.
Seems like he was hinting that absent the banking mess, the increase might have been larger ?
What was that? Serious case of whiplash! Most of it occurred in the last 20 mins before market close.
Almost like a flash crash.
That close to a close is a little fishy.That is what I THOUGHT would happen immediately after Powell finished. Guess it took a while to sink in.
What was that? Serious case of whiplash! Most of it occurred in the last 20 mins before market close.
Almost like a flash crash.
"Following the central bank’s latest decision, major U.S. indexes rose. Then, stocks turned down after Fed Chair Jerome Powell said during the press conference that a rate cut this year wasn’t part of the central bank’s “baseline expectation.” "
https://www.wsj.com/articles/global-stocks-markets-dow-update-03-22-2023-a552669c