$WLD
🚨👀 Simply because Core CPI comes in lower than anticipated, it does not imply the Federal Reserve will immediately reduce interest rates, nor that hawkish officials will suddenly adopt a dovish stance 🚨
Historically, even when CPI printed below expectations ahead of major presidential or midterm elections, the stock market by no means guaranteed an immediate rally ↩️
Furthermore, those Fed members presumed to have voted for a pause in June’s dot plot have recently intensified their hawkish rhetoric
This is despite the fact that Core CPI figures for both June and July arrived below market expectations 👀
This aligns precisely with the remarks made by Fed Chair Warsh at the recent Jackson Hole symposium, wherein he noted that a few recent inflation metrics have not fundamentally altered the broader inflationary trend 📢
In essence, even should the market receive the lower Core CPI it desires, it remains highly improbable that hawkish officials will shift to a dovish posture and lower their dot plot projections ↔️
Nor is it likely that the Fed Chair, having delivered hawkish commentary merely fortnight ago, would suggest a potential October rate cut or advocate for a dovish pause at the upcoming FOMC meeting 👀
One must therefore consider what positive catalysts actually remain for equities following the CPI and FOMC events 📢
Unless Treasury yields decline dramatically, one ought to expect negative pressures to persist rather than favorable conditions 👀
$ADA
$ATOM
#Fed #USGovernment #Market_Update
🚨👀 Simply because Core CPI comes in lower than anticipated, it does not imply the Federal Reserve will immediately reduce interest rates, nor that hawkish officials will suddenly adopt a dovish stance 🚨
Historically, even when CPI printed below expectations ahead of major presidential or midterm elections, the stock market by no means guaranteed an immediate rally ↩️
Furthermore, those Fed members presumed to have voted for a pause in June’s dot plot have recently intensified their hawkish rhetoric
This is despite the fact that Core CPI figures for both June and July arrived below market expectations 👀
This aligns precisely with the remarks made by Fed Chair Warsh at the recent Jackson Hole symposium, wherein he noted that a few recent inflation metrics have not fundamentally altered the broader inflationary trend 📢
In essence, even should the market receive the lower Core CPI it desires, it remains highly improbable that hawkish officials will shift to a dovish posture and lower their dot plot projections ↔️
Nor is it likely that the Fed Chair, having delivered hawkish commentary merely fortnight ago, would suggest a potential October rate cut or advocate for a dovish pause at the upcoming FOMC meeting 👀
One must therefore consider what positive catalysts actually remain for equities following the CPI and FOMC events 📢
Unless Treasury yields decline dramatically, one ought to expect negative pressures to persist rather than favorable conditions 👀
$ADA
$ATOM
#Fed #USGovernment #Market_Update
