A little birdy told me they may do 50bps but a full stop on the hawkishness. It's looking like 25 and data dependent.
Latest Fed Asset purchases data 4/27/22 released short while ago shows for the first time in 2 years a decline for the past 2 weekly reports. Expiring treasuries coming off the books that are not being replaced. So tightening is happening (and actually has been for a while now), besides the coming rate increases.
Throw in today's report, yesterday's GDP, the strong dollar, an ECB that's slow rolling whatever they're doing, comments from President Xi at that Chinese Economic Forum and it's a giant confuzzlement. Maybe 50 and data dependent. You know they'll overdo it.
Cmon, interest rates are 0.5% with inflation 8%+ inflation cannot be tamed before interest rates above inflation This economy cannot function without money printing dollar pump is temporary and only because trash currencies like euro and yen fall into oblivion commodities still rising every day when lockdown end and china starts consume energy as before dollar dumps it will be avalanche again and inflation will pick up markets will crash then rise Venezuela type It won't matter if you bought S&p at 4000 or 3000 as index in the coming years will reach millions backed by worthless dollar service economy will shrink dramatically
(Bloomberg) And finally, here’s what Joe’s interested in this morning April was obviously a brutal month for stocks, with tech especially continuing to get crushed. Pull up a chart of basically any SPAC/Cloud/SaaS/ARK/crypto/growth/“Covid Winner” and it all looks the same. My one thought is that all the takes about the end of the “Fed put” were thoroughly proven correct last month. The yield on 2-year U.S. government bonds is the simplest proxy for where Fed policy is headed in the short term, and it ended the month right at the high for the cycle. There’s zero indication that the market expects the Fed to get jittery about its hiking plans, on account of the weakness in risky assets. At some point the decline might start to affect the Fed’s thinking, but at these levels it still means they’ll go full speed ahead.