By The Powell Of Greyskull

By Michael Every of Rabobank

I am assuming my post-FOMC Chair testimony headline above is the only one which refers to a cheesy 1980’s (and far worse 2022 Netflix rebooted) cartoon. However, I do so deliberately.

What we got in Congress yesterday WAS reminiscent of the 1980’s, with Powell refusing to take a 100bps hike off the table as if he were a muscled-up He-Man. Yet while another 75bps in July and more mighty blows were promised, Powell also suggested nobody was going to get really hurt. Ignore what Larry Summers just said about millions of people needing to lose their jobs for years, because a recession is “not inevitable,” says Powell: Oh yes it is, says Philip Marey.

Markets agree with Philip, not the guardian of Fedternia. Indeed, we are finally seeing a logically consistent movement: lower stocks, as US stocks head for the worst H1 since 1932, lower bond yields, lower

Keep reading this article on Zero Hedge - Blog.

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