by Chris Black
The latest CPI read was abysmal at 9.1% for June, and many are speculating that the FED will do a 100 BPS rate hike at the FOMC next week.
The already announced 75 point hike is still big, when all the talk was about 50 point hikes a few months ago.
Yet a trial balloon of a 100 point hike causes the market to rally on the 75 point hike.
Futures Jump As Traders Scale Back Fed Hike Expectations As Economy Slumps t.co/nmA8FdlJmn
— zerohedge (@zerohedge) July 18, 2022
All because that supposedly means the Fed won’t hike as aggressively.
It really is just like a tax cut when your taxes go up 5%, but they said they might go up 6. So your taxes actually went “down” by 1%.
They even pull that crap with administration salaries. Our school administrators actually claimed they cut their salaries after voting themselves a 10% pay raise because the pay raise was supposed to be 15%.
The entire system is a clown show.
But hey, the economy is going straight to shit in a train on fire, Europe is going under, China is collapsing, gas is $6 a gal her in US, people are in the streets protesting all over the planet, sounds like a bull market to me.