As interest rate hike expectations rise, will the overly prosperous U.S. stock market face a collapse❓
The number of people applying for unemployment benefits has stabilized, the debt ceiling issue has been significantly eased, and the U.S. stock market has rebounded strongly to the Jackson Hole highs in August last year. These factors have increased the possibility of a comprehensive upgrade of the FED economic forecast in June. The market is optimistic about the FOMC increase in June. Interest rate expectations were raised simultaneously (~33%).
A series of hawkish Fed remarks have resurfaced to manage market expectations. Dallas Fed Logan said that "the current data is not enough to support a pause in interest rate hikes." Jefferson said that inflation is "too high," but the impact of high interest rates has not yet been fully felt. Bullard reiterated his support for more High interest rates. With core CPI holding around 5%, the job market still quite hot, and the housing market rebounding sharply on low inventory, all eyes are now on the Chairman's upcoming remarks to see if he will redirect his "inner hawkish soul" to curb the current excesses Booming U.S. stock market.
The number of people applying for unemployment benefits has stabilized, the debt ceiling issue has been significantly eased, and the U.S. stock market has rebounded strongly to the Jackson Hole highs in August last year. These factors have increased the possibility of a comprehensive upgrade of the FED economic forecast in June. The market is optimistic about the FOMC increase in June. Interest rate expectations were raised simultaneously (~33%).
A series of hawkish Fed remarks have resurfaced to manage market expectations. Dallas Fed Logan said that "the current data is not enough to support a pause in interest rate hikes." Jefferson said that inflation is "too high," but the impact of high interest rates has not yet been fully felt. Bullard reiterated his support for more High interest rates. With core CPI holding around 5%, the job market still quite hot, and the housing market rebounding sharply on low inventory, all eyes are now on the Chairman's upcoming remarks to see if he will redirect his "inner hawkish soul" to curb the current excesses Booming U.S. stock market.