The Fed chairman has given the market a very important clue on 13 Dec 22.
At what level will he consider an interest rate cut?
He said “I wouldn't see us considering rate cuts until the committee is confident that inflation is moving down to 2% in a sustained way,” meaning only if CPI is heading nearing 2% then it is hopeful to see a rate cut. Market consensus for CPI to range between 5% to 8..9% for this year. If this is true, the Fed is likely to continue to hike the rate moderately at 0.25% in each meeting just to bring inflation down.
I am seeing this as the best case scenario.
Today’s content:
Strategy in an inflationary environment: i. Commodity – Buy them ii. Stock market – Trade them
Can inflation be hedged and can we trade into the interest rate uptrend?
CME Micro 30 Year Yield Futures Minimum fluctuation
0.001 point = $1 0.01 point = $10 0.1 point = $100 1 point = $1,000
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bullish on fed rat hikes and not bearish gold over the next year..... a bit backwards no?
konhow
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@nuggetrouble, Dollar has started easing off some weeks ago knowing Fed is going to adopt moderate hike policy. Gold strengthens when dollar weakens.
financialfreedomgoals101
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Interesting View, Why do you think It will be flat at a 0.25% rate hike each month?
konhow
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@financialfreedomgoals101, The Fed mentioned as much as possible they will adopt moderate hikes and avoid massive rate hike; provided the CPI do not break above the recent range. I am seeing this as the best case scenario.
The_Mummy
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Bitcoin doesn’t care about the false Fed system and “interest rates”. Whatever that is even supposed to mean. Some sort of phoney magic number nonsense. Inflation is way higher than they lie about. Interest rates is some weird scam to rip everyone off as usual. Only solution is Bitcoin.