You Should Believe the Fed

Please don’t tell me that the equity market’s afternoon swoon has to do with Powell indicating that a 50 bps move is on the table (if not locked in). Where have you been hiding if that is the case? Once again, the Fed’s greatest focus right now is on inflation. As Powell has said, “Economies don’t work without price stability.” In order to fight inflation, you need to remove stimulus from the economy. They don’t care what the impact is on markets. That isn’t their role nor should it be.

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