In essence, investors think the Fed members are spooked by inflation now but will eventually come to their senses later. And there's good reason to think that's right.So why do markets think the Fed is spooked by inflation? The same Fed whose chairman has for months been stressing the"transitory" nature of the current price pressures.
"I think it's clear and I am confident that we are on a path to a very strong labor market – a labor market that shows low unemployment, high participation, rising wages for people across the spectrum," Powell said. That feels very much like a forecast driving a shift in the policy stance. Third, Powell was clear during his post-meeting press conference that the clock is starting on the paring back of the Fed's asset purchase program —a key precursor to a rate hike. If the discussion is about tapering, the Fed will sound more hawkish than if the discussion is about rate hikes. The inflation data will be more cooperative.
RenMacLLC there is no market...manipulators want you to believe inflation is transitory pushing interest rates lower and pumping the same shitty trillions fat tech stonks.
RenMacLLC That's one insighful comment.
RenMacLLC A straight to the point comment.
RenMacLLC wow