11-01-2022, 12:56 PM
Fed Rate Hike or Pivot? I am betting on Pivot
<!-- SC_OFF --><div class="md"><p>The big question this week is whether the Fed is going to hit the markets with a 75 basis point or a lower hike. I tend to think the Fed has do at least a 50, but more like 75 increase due to inflation.</p> <p>but I think they will pivot....</p> <p>According to <a href="https://alphabetastock.com/investors-weigh-recession-risk-as-they-wait-for-fed-wall-street-cheat-sheet/292774/">AlphaBetaStocks Cheat sheet</a>, the fed is already talking about damping the increase. </p> <p>San Francisco Fed Bank’s President Mary Daly emphasized the central bank’s precarious position, noting that it is at risk of either overtightening, which would cause a severe recession, or under-tightening, which would increase inflation. </p> <p>The fed doesn't want to look foolish and wants to ensure inflation is in check before pivoting. </p> <p>"The biggest risk is that the Fed overdoes it since inflation tends to react quite slowly to higher rates, likely even more so this cycle given still not fully understood distortions to the economy caused by the COVID pandemic," <a href="https://www.reuters.com/markets/us/fed-pivot-not-horizon-even-over-tightening-risks-loom-strategists-2022-10-28/">said Nick Brooks</a>, head of investment and economic research at ICG. </p> <p>What do you guys think?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Mobile-Opportunity24"> /u/Mobile-Opportunity24 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/yij4o3/fed_rate_hike_or_pivot_i_am_betting_on_pivot/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/yij4o3/fed_rate_hike_or_pivot_i_am_betting_on_pivot/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>The big question this week is whether the Fed is going to hit the markets with a 75 basis point or a lower hike. I tend to think the Fed has do at least a 50, but more like 75 increase due to inflation.</p> <p>but I think they will pivot....</p> <p>According to <a href="https://alphabetastock.com/investors-weigh-recession-risk-as-they-wait-for-fed-wall-street-cheat-sheet/292774/">AlphaBetaStocks Cheat sheet</a>, the fed is already talking about damping the increase. </p> <p>San Francisco Fed Bank’s President Mary Daly emphasized the central bank’s precarious position, noting that it is at risk of either overtightening, which would cause a severe recession, or under-tightening, which would increase inflation. </p> <p>The fed doesn't want to look foolish and wants to ensure inflation is in check before pivoting. </p> <p>"The biggest risk is that the Fed overdoes it since inflation tends to react quite slowly to higher rates, likely even more so this cycle given still not fully understood distortions to the economy caused by the COVID pandemic," <a href="https://www.reuters.com/markets/us/fed-pivot-not-horizon-even-over-tightening-risks-loom-strategists-2022-10-28/">said Nick Brooks</a>, head of investment and economic research at ICG. </p> <p>What do you guys think?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Mobile-Opportunity24"> /u/Mobile-Opportunity24 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/yij4o3/fed_rate_hike_or_pivot_i_am_betting_on_pivot/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/yij4o3/fed_rate_hike_or_pivot_i_am_betting_on_pivot/">[comments]</a></span>