Keep it simple

Equities and bonds are bouncing back mainly because 1H2022 was the worst ever in real return terms. Worse than 1932!

Brighter markets mean easier financial conditions — the opposite of what the Fed wants to see, especially after consecutive 75 basis point rate increases. This all just gives the Fed a pass to hit the brakes even harder.

Katie Martin FT 2 August 2022

https://www.ft.com/content/d6a62a44-898b-493c-80c8-61ec0b55c4d6


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