Powell remains with an aggressive tone. The markets are taking it all in.
As most of you know by now, when he opens his mouth it sends the markets up, down, and sideways… He did leave much to be determined by future economic information.
Moving forward, bets were on the table that an aggressive stance would persist, so a percentage of Powell’s comments are factored into the system.
What is a tad clearer, this aggressive Fed position is coming to an end, perhaps we will see a 75 basis point increase next month.
However, don´t push this train any further because it will fly off the tracks.
Our screens look like a joke every time Powell gets in front of a camera. RED. Just RED.
Let’s call it like it is; Powell, you were dead wrong with your transitory inflation story, accept it, and move on.
This attempt now to play catch up is costing investors billions of dollars.
It´s still possible to have a soft landing but not likely is the focus is rectifying your past mistakes.
Markets need stability; if your obsession with inflation destroys the economy, then what did you accomplish?
Short-term: Headlines are your buying opportunities.
Long-term: Fundamentals are your guide.
Much success to all.
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