Where is the Fed’s “U-Turn” that Wall Street promised us?
Wall Street’s fervent hopes and prayers for rate-cut ammo were not fulfilled.
The inflation index the Fed anointed as its yardstick booked two big jumps in a row: May near the top of the range since 2010; April, third largest jump since 2010.
It’s not so stealthy.
The Fed has already accomplished more with its verbiage this year than it had last time when it cut rates all the way to zero and did trillions of dollars of QE.
For six months now, folks said the Fed had made a “U-turn” and would cut rates at the “next” meeting, etc. But none of it happened — and might not happen. Here’s why, in Powell’s words.
The rate cuts for 2019 are a pipe-dream: Goldman Sachs and Deutsche Bank.
But where the heck is the “U-Turn?”
Stock market and corporate bond market are in la-la-land, pricing in an economic boom. They’re not seeing a rate-cut economy. So why would the Fed?
Transcript of my podcast.