There’s A Massive Fiscal Tightening Underway. The Economy Has To Get Real Bad So The Fed Can Come In Again And Save It

THERE'S A MASSIVE FISCAL TIGHTENING UNDERWAY

These days all the focus is on the Fed's monetary moves.

But people should also be looking at what's happening on the fiscal side, where an extremely rapid tightening is underway

From the @markets newsletter t.co/Pl5nZqsNJq pic.twitter.com/g3bbT7GmDb

— Joe Weisenthal (@TheStalwart) May 23, 2022

The BULLISH case in a nutshell: The economy has to get real bad so the FED can come in again and save it, lets BUY STOCKS !!

We are living in a FCKD up universe.

— Oscar G. Salem (@Bellehos) May 25, 2022

Oldie but a goodie pic.twitter.com/bGDETHKKvV

— Eric Burroughs 📈🏳️‍🌈 (@ericbeebo) May 25, 2022

In recent weeks, the St. Louis Fed Financial Stress Index began to diverge from similar indexes. What might be causing this? t.co/IEv0WyZ2tK pic.twitter.com/Ii2LXmgLxf

— St. Louis Fed (@stlouisfed) May 25, 2022

OUT ON A LIMB: Goldman Sachs pegs recession risk at 35%.

Inflation is out of control. Inflation expectations are getting out of control. Markets are imploding because investors are not confident that the @federalreserve will stop inflation. If the Fed doesn’t do its job, the market will do the Fed’s job, and that is what

— Bill Ackman (@BillAckman) May 24, 2022

It’s Davos week, with the U.S. stock market on the verge of meltdown. Which begs the question – in a world where there is no such thing as right or wrong, what could go wrong?

Decent #Stagflation setup! pic.twitter.com/Gp4ShPHsTS

— Market Radar (@themarketradar) May 26, 2022