‘You Are Here’: ‘Unstable’ Rally Confronts Perilous Seasonal

Fed officials put market participants on notice this week: There was no "dovish pivot" from Jerome Powell at July's press conference. That narrative was a canard. Mary Daly, Charles Evans and Loretta Mester all underscored the Fed's commitment to the inflation fight and a bevy of additional Fed speakers were poised to do the same for the balance of the week. To the extent the recovery in equities (helped along by a concurrent rally in bonds) was a function of the idea that recession risk would