🚨 THE WORST-CASE SCENARIO FOR MARKETS IS STARTING TO UNFOLD.
The Fed just hiked rates by 25 bps, and Warsh’s message afterward was even more hawkish.
• Inflation is “too high” and has stayed above target for too long.
• The economy has strengthened and the labor market remains in good shape.
• Price stability is now the Fed’s main focus.
• Rising bond yields are being driven by economic strength, massive competition for capital and geopolitics.
• Warsh refused to rule out further hikes.
• Traders are now betting on TWO more rate hikes before year-end.
• And Warsh made the Fed’s position clear: “Today’s action starts to show we are serious about this.”
The Fed is hiking, bond yields are surging, and more hikes are now being priced in.
The message is pretty clear: the Fed is not done tightening yet.$GOOGL $MSFT
The Fed just hiked rates by 25 bps, and Warsh’s message afterward was even more hawkish.
• Inflation is “too high” and has stayed above target for too long.
• The economy has strengthened and the labor market remains in good shape.
• Price stability is now the Fed’s main focus.
• Rising bond yields are being driven by economic strength, massive competition for capital and geopolitics.
• Warsh refused to rule out further hikes.
• Traders are now betting on TWO more rate hikes before year-end.
• And Warsh made the Fed’s position clear: “Today’s action starts to show we are serious about this.”
The Fed is hiking, bond yields are surging, and more hikes are now being priced in.
The message is pretty clear: the Fed is not done tightening yet.$GOOGL $MSFT
