US inflation data to test market’s bets on future Fed easing By Reuters

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*U.S. INFLATION DATA, BANK EARNINGS THIS WEEK TO TEST MARKET’S BETS ON FUTURE FED EASING $DIA $SPY $QQQ 🇺🇸🇺🇸

NEW YORK - A closely watched U.S. inflation report next week could help settle one of Wall Street’s most pressing questions: whether the market has correctly pegged the near-term trajectory for interest rates.

“If comes in hot, investors will start to price interest rates closer to where the Fed is and likely pressure asset prices,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. The firm is recommending clients slightly underweight equities, expecting interest rate hikes to hit consumer spending and corporate profits.

In the bond market, the Fed’s preferred recession indicator plunged to fresh lows in the past week, bolstering the case for those who believe the central bank will soon need to cut rates. The measure compares the current implied forward rate on Treasury bills 18 months from now with the current yield on a three-month Treasury bill.

"Financial markets and the Federal Reserve are reading from two different playbooks," strategists at LPL Research said in a note earlier this week.

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Inflation looks to be going up

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If Core inflation keeps high, Fed has no business easing. We are seeing a great disconnect between market expectations and FED.

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OPEC's surprise production cut complicates the Fed's fight against inflation | CNN BusinessA surprise production cut announcement this week from Saudi Arabia and several other OPEC+ oil producers complicates the Federal Reserve's mission to cool the economy and could worsen inflation in the United States, economists say. FJB!!! Impossible. Our democratic leaders signed a paper called inflation reduction act. We are safe from inflation because of democrats. Feds raising interest rates doesn't fight inflation. It makes bankers richer. Period
Source: CNN - 🏆 4. / 95 Read more »