Are US financial conditions loose as a goose?
Source: Bloomberg
The last few weeks have seen US macro data reverse its recent trend of disappointment…
Source: Bloomberg
The long-end of the curve is outperforming…
Source: Bloomberg
But, ‘do not fight The Fed’ seems to be the narrative and expectations for a March rate-cut are rising once again…
Source: Bloomberg
And the market is pricing in over 160bps of cuts for next year…
Source: Bloomberg
Financial Conditions are now at the same level of looseness as of May 2022…
Source: Bloomberg
That is 300bps of Fed rate-hikes ago!!! Is that really what The Fed wanted?
Jay Powell and The Gang are likely partying at a nightclub drinking Heineken while the rest of us drink Pabst Blue Ribbon.
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