Fed's message to stock market: Big rallies will only prolong painful inflation fight

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“... If equities continue to rally on bad economic news, the Fed will need to push forward to an even higher terminal rate and unofficially add ‘weaker stocks’ to the mandate,” wrote Ian Lyngen and Benjamin Jeffery, rates strategist at BMO Capital Markets.

A line from the minutes of the central bank’s December policy meeting released Wednesday afternoon was taken by analysts and economists as a warning to financial market participants that bets on a policy pivot in 2023 aren’t welcome. And, to the extent that equity rallies and other financial market developments loosen overall financial conditions, those wagers will only force the Fed’s policy-setting Federal Open Market Committee to prolong the pain necessary to bring down inflation.

Archive: Fed must ‘inflict more losses’ on stock-market investors to tame inflation, says former central banker The minutes made clear that the “proverbial Fed put is officially dead and gone,” said Kent Engelke, chief economic strategist at Capitol Securities Management, in a Thursday note.

 

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Crypto be like: “Bet that.”

The face of job loss.

Holy mother of god, anyway i buy a put and the markets rally.

Is CPI is falling fast, 9.1 to 7.1 June to November, and real wages are negative why are we so concerned with asset prices? Bullard even called 2023 disinflationary

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Fed to stock market: Big rallies will only prolong painful inflation fight“Translated from Fedspeak, the FOMC members do not like stock market rallies, since they fear it could result in potentially inflationary consumer spending,” said Louis Navellier, president and founder of Navellier & Associates, in a Thursday note. So let me get this straight - we little people can’t spend, so that giant gubment can. Yeah? Screw that! The FED is Right Yall the ones have it programed that way, so un program it
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