“Indeed, the Donald’s impending attack on the purported sacred ‘independence’ of the Fed is the Orange Swan that looms over the casino.”
Got all of that?
STRONG MAJORITY OF FED OFFICIALS SAW TRADE WAR AS DOWNSIDE RISK
FED SEES `SIGNIFICANT’ FISCAL-POLICY GROWTH BOOST NEXT FEW YRS
A NUMBER FED OFFICIALS SAW OUTLOOK WARRANTING STEEPER RATE PATH
Say your prayers.
“In our view, Fed put is currently moving deeper out of the money. This is effectively a withdrawal of convexity and risk assets are reacting with what at the moment appears as a reinforcing loop.”
Well, the reviews are in on the Fed decision, the SEP, the dots and on Jerome Powell’s “plain speak” presser debut.
The market’s verdict was as follows.
I’m sorry, but I’m not sure doublespeak and bluntness are going to be compatible forever.
FED RAISES RATES QUARTER POINT, SIGNALS TWO MORE HIKES IN 2018
FED ESTIMATES SHOW STEEPER PATH FOR RATE INCREASES IN 2019-20
FED SAYS `ECONOMIC OUTLOOK HAS STRENGTHENED IN RECENT MONTHS’
FED REPEATS NEAR-TERM RISKS `APPEAR ROUGHLY BALANCED’
This should be all kinds of amusing.
Well needless to say, this was not a particularly inspiring week.
The narrative in 2017 revolved around two things…
“The Donald seems to think that the 37% gain in the stock market between election day and the January 26th high was all about him, and in one sense that’s true. Donald Trump is all about delusional and so are the casino punters.”