03-02-2022, 05:18 PM
Why is the market assuming Fed action will be less aggressive given the Ukraine situ
<!-- SC_OFF --><div class="md"><p>So the market priced in a possible 50 basis points rate increase in March (or 7 hikes over the year), then Ukraine is invaded and it had the biggest rally in years on the assumption it would be a less aggressive .25% in March and 5 increases over the years</p> <p>Now the market is trying to pump like crazy as if all uncertainty is off the table, inflation disappeared and the Fed will now do nothing.</p> <p>So why isn’t the market pricing in the almost guaranteed stagflation from soaring oil prices and the economic impact of Russian markets vanishing overnight? </p> <p>Wouldn’t the Fed have to take even more aggressive action to curb the home-grown inflation getting amplified by the geopolitical inflation?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/DontMicrowaveCats"> /u/DontMicrowaveCats </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/t527of/why_is_the_market_assuming_fed_action_will_be/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/t527of/why_is_the_market_assuming_fed_action_will_be/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>So the market priced in a possible 50 basis points rate increase in March (or 7 hikes over the year), then Ukraine is invaded and it had the biggest rally in years on the assumption it would be a less aggressive .25% in March and 5 increases over the years</p> <p>Now the market is trying to pump like crazy as if all uncertainty is off the table, inflation disappeared and the Fed will now do nothing.</p> <p>So why isn’t the market pricing in the almost guaranteed stagflation from soaring oil prices and the economic impact of Russian markets vanishing overnight? </p> <p>Wouldn’t the Fed have to take even more aggressive action to curb the home-grown inflation getting amplified by the geopolitical inflation?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/DontMicrowaveCats"> /u/DontMicrowaveCats </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/t527of/why_is_the_market_assuming_fed_action_will_be/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/t527of/why_is_the_market_assuming_fed_action_will_be/">[comments]</a></span>Kind Regards R