Dovish Hawks Or Hawkish Doves? McElligott On The Fed

Plainly, Jerome Powell risked further destabilizing fragile US equities at the January FOMC press conference. Stocks wanted a "wink," and while markets understood that Powell's hands are tied given the inflation situation, a risk-friendly outcome would entail "merely" confirming the likelihood of a 25bps (so, not 50bps) March hike, an obligatory nod to balance sheet runoff commencing sometime thereafter (preferably not until, say, June) and an acknowledgment that financial conditions have tight

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