bullish
Stop Fooling Around, J-Pow
SUMMARY
- Heading into yesterday’s Fed meeting, the bond market asked a tough question to Powell: do you mean business?
- Powell took a ‘’Bad Cop, Good Cop’’ stance: he answered with a firm ‘’Yes’’ at first, and then tried to soften the message during the press conference.
- This spurred a relief rally in risk assets, but it won’t last.
Bond markets hate half-hearted stances, and they will keep testing the Fed and risk assets until they get what they want: clarity.
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