The Federal Reserve says it is going to keep raising interest rates.

 Wall Street thinks it’s bluffing.

This could spell trouble for both of them. 

WSJ 18 August 2022

https://www.wsj.com/articles/in-high-stakes-inflation-game-wall-street-bets-the-fed-is-bluffing-11660830685

Jerome Powell really means what he says

When they said that “there was little evidence to date that inflation pressures were subsiding,” they meant it. 

When they said that inflation “would likely stay uncomfortably high for some time,” they meant it.

Fed’s Bullard says he is leaning toward backing 0.75 percentage point hike in September

MarktWatch 18 August 2022

https://www.marketwatch.com/story/the-fed-is-not-getting-cold-feet-about-wrestling-inflation-to-the-ground-so-stop-misreading-its-minutes-11660851861

Fed’s Bullard Favoring 0.75-Percentage-Point, says he isn’t ready to say inflation surge has peaked 

WSJ 18 August 2022

https://www.wsj.com/articles/feds-bullard-leans-toward-favoring-0-75-percentage-point-september-rate-rise-11660842768

The bullish interpretation is to assume that a soft landing is under way. 

In this world inflation will drift down without derailing economic growth, and the Federal Reserve may not even need to raise interest rates quite so quickly.

The Economist 18 August 2022

https://www.economist.com/leaders/2022/08/18/a-fresh-american-bull-market-is-under-way-can-it-last