UBS Managing Director and Senior Portfolio Manager Jason Katz explains investors want to see that inflation is moderating, that earnings will continue to be"less bad" and that the Fed won't be overly aggressive with rate hikes.markets weren’t tumbling on Monday
after the Senate passed the Democrats' social spending and taxation bill following a marathon "vote-a-rama" session that lasted more than 15 hours. The passage of the bill is the culmination of more than a year of intra-party negotiations among Democrats trying to pass a party-line bill. They used a process called budget reconciliation, which allows them to get around the Senate filibuster, to move forward.
Despite the bill’s passage, which includes more than $400 billion in spending and more than $700 billion in taxes," on Monday, Katz argued that he believes markets are "really absorbing the job numbers in terms of how the Fed may react to it," calling it "really good news." He also noted that, while the runway for a soft landing may have shortened, "a crash landing is probably avoidable.
They, like you, hate when the American people win.