Yesterday with FED's Brainard shift from Dove to Hawk markets started reacting strongly with bets for a 0.50% rate hike on the next FED's meeting climbing as high as 85% at some point.
BTC at the lowest point dropped by 2000$ , Gold Dropped by 30$ and Nasdaq went from 15000 to 14600 while DXY climbed up to 2 Year highs at 99.75.
Brainard's Comments
Fed's Brainard: Combined Impact Of Rate Hikes, B/Sheet Reduction Will Bring MonPol To More Neutral Position Later This Year
- After Policy More Neutral, Extent Of Additional Tightening Dependent On Evolving Outlook For Inflation And Employment
- Fed Is Prepared To Take Stronger Action If Inflation, Inflation Expectation Indicators Suggest Need For Such Action
- Fed Will Tighten MonPol "Methodically" Through Series Of Rate Hikes, Starting To Reduce Balance Sheet At Rapid Pace As Soon As May Meeting
- I Expect B/Sheet To Shrink Considerably More Rapidly Than Previous Recovery
- On B/Sheet, I Expect Significantly Larger Caps And Much Shorter Period To Phase In Maximum Caps Vs In 2017-2019
Fed's Brainard: Currently Inflation Is Much Too High, Subject To Upside Risks
- Russia Invasion, Recent Covid Lockdowns In China Likely To Extend Supply Chain Bottlenecks And Also Pose Downside Risks To Growth
- Watching Yield Curve, Other Data For Suggestions Of Increased Downside Risks To Activity
- Longer-Term Inflation Expectations Remain Within Historical Range
- ‘Carefully Monitoring’ Extent Of Rotation From Demand For Goods Back To Services, Whether Service Sector Can Absorb Without Sparking Inflation Pressures
- Burden Of Inflation On Lower Income Households, Those With More
With this in mind and even thought this is the base case for FED's next meeting. We need to keep an eye to all FED's Speeches from now and on and eventually from those Dove FED members to track any further shifts that will fuel more the 0.50% interest rate hike decision for next meeting.
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BTC at the lowest point dropped by 2000$ , Gold Dropped by 30$ and Nasdaq went from 15000 to 14600 while DXY climbed up to 2 Year highs at 99.75.
Brainard's Comments
Fed's Brainard: Combined Impact Of Rate Hikes, B/Sheet Reduction Will Bring MonPol To More Neutral Position Later This Year
- After Policy More Neutral, Extent Of Additional Tightening Dependent On Evolving Outlook For Inflation And Employment
- Fed Is Prepared To Take Stronger Action If Inflation, Inflation Expectation Indicators Suggest Need For Such Action
- Fed Will Tighten MonPol "Methodically" Through Series Of Rate Hikes, Starting To Reduce Balance Sheet At Rapid Pace As Soon As May Meeting
- I Expect B/Sheet To Shrink Considerably More Rapidly Than Previous Recovery
- On B/Sheet, I Expect Significantly Larger Caps And Much Shorter Period To Phase In Maximum Caps Vs In 2017-2019
Fed's Brainard: Currently Inflation Is Much Too High, Subject To Upside Risks
- Russia Invasion, Recent Covid Lockdowns In China Likely To Extend Supply Chain Bottlenecks And Also Pose Downside Risks To Growth
- Watching Yield Curve, Other Data For Suggestions Of Increased Downside Risks To Activity
- Longer-Term Inflation Expectations Remain Within Historical Range
- ‘Carefully Monitoring’ Extent Of Rotation From Demand For Goods Back To Services, Whether Service Sector Can Absorb Without Sparking Inflation Pressures
- Burden Of Inflation On Lower Income Households, Those With More
With this in mind and even thought this is the base case for FED's next meeting. We need to keep an eye to all FED's Speeches from now and on and eventually from those Dove FED members to track any further shifts that will fuel more the 0.50% interest rate hike decision for next meeting.
"If you want to learn how to trade these events Subscribe for a Free Trial on investingbridge.com
"
Steve G20
