he current situation, with slowing economic growth and higher borrowing costs, means we should be careful as a crisis might be on the horizon.
https://twitter.com/FinanceLancelot/status/1713741867634876868
"We’re now at the point where we’re going to see the impact of these hikes really start to play out,” Citadel’s Ken Griffin has said. pic.twitter.com/mq28AidW5i
— unusual_whales (@unusual_whales) October 15, 2023
Every time manufacturing contraction reached as low as it did this cycle
The US economy has systematically experienced a recession
Except in 1967 pic.twitter.com/swxDiUo5rO
— Bravos Research (@bravosresearch) October 15, 2023
Since July, we have taken the view that the Fed was DONE rising rates.
We continue to believe that view is correct.
However, this does not mean that lower rates are coming any time soon.
Higher for longer is the new normal.
Follow us @KobeissiLetter for real time analysis.
— The Kobeissi Letter (@KobeissiLetter) October 15, 2023
A Hallmark Of The Federal Reserve are Crisis Events
Elevated risks loom over the U.S. economy as the Federal Reserve navigates a highly leveraged financial environment amidst its “higher for longer” strategy. Historically rooted patterns suggest the intersection of surging debt and restrictive financial conditions may steer towards a crisis, particularly given prior instances where rate hikes and yield curve inversions precede recessions. The heightened policy misstep risk amidst slowing economic growth and rising borrowing costs signals caution for potential crisis onset in the near future.