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Strategies & Market Trends : The Art of Investing
PICK 46.27-1.4%4:00 PM EST

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To: Sun Tzu who wrote (4451)6/18/2022 1:24:59 PM
From: Rarebird  Read Replies (2) of 10568
 
Market is pricing in FF of 4%. Do you really think that is high enough to quell inflation? I'm thinking 5-6% FF at least to get inflation down to 2-3%.

It would be better for the market if earnings and growth began to slow dramatically, then the Fed would mellow out and perhaps pause. But a strong economy and earnings growth will only produce more 50 basis point rate hikes until the desired effect takes hold.

Here is the thing that is preventing me from turning bullish: Fed needs and wants Markets to continue to fall till inflation reaches their targets.

I'm a bit like you and look at lots of factors and try to be anticipatory too. But the Fed is on the war path and that is a very big factor, if not the biggest.
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