read.cash Log in
@BitcoinBaby

𝐂𝐫𝐲𝐩𝐭𝐨 π–πžπšπ­π‘πžπ« π…π¨π«πžπœπšπ¬π­ Now wasnΒ΄t that unexpected? When the FED does a 75 points rate hike markets rally, but with a 50 points hike they dump! Well itΒ΄s all about the tone of voice, or the tone of FED, and the fact the market is always forward-looking. Hence last time with the 75 points the tone sounded as if a 50-point hike was possible, hence a happy market. Now we got that 50 point hike and people expected a slow reduction in the hikes, but JP made very clear heΒ΄s not giving up the fight against inflation. They will keep fighting till itΒ΄s 2%. Based on the CPI and the current stabilization of prices a 2-3% CPI would come in June 2023. But the FED is taking a different approach and expects the Year over Year inflation to stay above 2-3% for at least another year. They say donΒ΄t fight the FED, but I think in this case they might be wrong and we will see a stable 2-3% inflation by summer of 2023.

2 comments

Log in to join in Reading is open to everyone. Replying needs an account.