The Great Monetary Pivot of 2024
Stocks, bonds and currencies all surge post-Fed meeting
Markets embrace soft-landing scenario as Fed eyes rate cuts
Bloomberg 14 December 2023
Powell Pivots Toward a Happy New Year
Powell’s 45-minute press conference, came as close to promising early rate cuts as a central bank could ever do. It seems that the Fed has at last executed its much discussed “pivot” toward easier money.
The Fed’s move catches markets by surprise. Time will tell if it’s too soon for the economy, but the biggest risk could be in the US elections.
If Powell’s new approach is right, then Team Transitory were broadly right, and we can expect services inflation to decline. We can also expect rates to come down from their unnecessarily high levels to avert a broad slowdown.
If that does happen, then Powell — in conjunction with the Biden administration — will have pulled off one of the most remarkable acts of economic escapology in history.
John Authers 14 December 2023
https://www.bloomberg.com/opinion/articles/2023-12-14/powell-pivots-on-rates-toward-a-happy-new-year
The Army Stars - Happy days are here again!
https://www.youtube.com/watch?v=6h_GChgSv_A
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