12-15-2022, 11:56 AM
Powell’s FOMC speech all but guarantees rate cuts in 2023
<!-- SC_OFF --><div class="md"><p><a href="https://marketrebellion.com/news/trading-insights/between-the-lines-the-shockingly-dovish-news-hidden-in-powells-december-fomc-speech/">https://marketrebellion.com/news/trading-insights/between-the-lines-the-shockingly-dovish-news-hidden-in-powells-december-fomc-speech/</a></p> <blockquote> <p>So, when you hear the economists predicting that inflation could reach 2% by mid-year 2023, it isn’t just wishful thinking. It’s a tactful analysis on the impact a slowing economy, lagging rate hikes, recessionary fears, and a 40-year-high relative comparison (mid-year was the inflationary high of 2022).</p> <p>The bottom line: Powell saying that Fed will consider cutting rates when the Fed is confident that inflation is “moving towards 2%” is like saying, “Forget everything I said about staying the course. Forget about ‘higher for longer.’ We’re turning the money printer back on sooner than you think.”</p> </blockquote> <p>Article makes the point that high YoY inflation comparisons will likely take us to lower CPI readings, and consequently give Powell room to cut rates. </p> <p>Do you agree with this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/LostToAModIn7Moves"> /u/LostToAModIn7Moves </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/zm3mfu/powells_fomc_speech_all_but_guarantees_rate_cuts/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/zm3mfu/powells_fomc_speech_all_but_guarantees_rate_cuts/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p><a href="https://marketrebellion.com/news/trading-insights/between-the-lines-the-shockingly-dovish-news-hidden-in-powells-december-fomc-speech/">https://marketrebellion.com/news/trading-insights/between-the-lines-the-shockingly-dovish-news-hidden-in-powells-december-fomc-speech/</a></p> <blockquote> <p>So, when you hear the economists predicting that inflation could reach 2% by mid-year 2023, it isn’t just wishful thinking. It’s a tactful analysis on the impact a slowing economy, lagging rate hikes, recessionary fears, and a 40-year-high relative comparison (mid-year was the inflationary high of 2022).</p> <p>The bottom line: Powell saying that Fed will consider cutting rates when the Fed is confident that inflation is “moving towards 2%” is like saying, “Forget everything I said about staying the course. Forget about ‘higher for longer.’ We’re turning the money printer back on sooner than you think.”</p> </blockquote> <p>Article makes the point that high YoY inflation comparisons will likely take us to lower CPI readings, and consequently give Powell room to cut rates. </p> <p>Do you agree with this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/LostToAModIn7Moves"> /u/LostToAModIn7Moves </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/zm3mfu/powells_fomc_speech_all_but_guarantees_rate_cuts/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/zm3mfu/powells_fomc_speech_all_but_guarantees_rate_cuts/">[comments]</a></span>