Except he is wrong. This is the one time S2000 (he's a perma-bear) should be feeling gaga, because the FED is not going to relent. This is it. No more easy money. Powell is going to effect a policy mistake in his bumbling QA tomorrow! Mark THAT, dude!
Of course, I think you are right. That's why I bookmarked his post! I am expecting to be able to put on a big ear to ear grin later, as I remind him of his prediction.
I have never understood why the Fed is so reluctant to used their Red T powers to tighten up a wee bit on Margin requirements whenever market insanity reaches moonshot levels. But of course the lost revenues would be unpopular with "the Street" and with traders who thrive on volatility and financial insanity. Nevertheless this could be an important adjunct in cooling inflation via a lessening of the "wealth effect" and by dampening valuations.
It won't phase him he was wrong about literally everything 2015-2016 he learned nothing from the experience.
Thank you. I will reiterate the fed will NOT raise rates 4 times this year in 2022. And if they just so happen to it won't belong before they take all those itsy bitsy tate hikes away. I will mention again that equities, yes equities, will dictate the feds move in rates.
Well the reason for not raising rates 4 times in 2022 will be because of the market drop. The markets will sell off each and every time there is a threat of fed hikes entering the market. So no rate hikes would be positive for markets however in order for the fed to pull back on any idea for rate hikes the markets would have dropped by the time they announce no New rate hikes. No one believes fed rate hikes will cause a sizeable sell off but they will because now rate hikes and heavy debt loads wont go over so well together.