Liquidity has started draining, no?https://t.co/rFsSXJH8n5
— Ilias Tsagklis (@iliastsagklis) April 4, 2022
#recession … #GFC2 US #Consumer edition
The cure for higher prices is higher prices… with demand destruction now extending even to consumer staples π https://t.co/lKORjRPGbr pic.twitter.com/iTUABYqfNi
— Invariant Perspective (@InvariantPersp1) April 4, 2022
πΊπΈ J.P. Morgan U.S. interest rate forecasts
We raised our interest rate forecast to reflect a more aggressive Fed tightening and QT path for the Fed pic.twitter.com/CY4I5Ow4J2
— PiQ ξ¨ (@PriapusIQ) April 4, 2022
πΊπΈ J.P. Morgan outlook for Fed policy
Recent comments by Fed officials suggest a faster response may be preferred.
As such, we are now replacing our expectations for 25bp hikes in May and June with 50bp moves, reverting to 25bp hikes in July and thereafter pic.twitter.com/iCrKX0xoqT
— PiQ ξ¨ (@PriapusIQ) April 4, 2022
#WallStreet is increasingly facing headwinds from faltering #Fed #Liquidity …. the dance of money? pic.twitter.com/seuaYuFdTX
— CrossBorder Capital (@crossbordercap) April 4, 2022
Goldman Sachs compares this period to 1973 and then concludes stocks will likely RISE by 4%:
"The 2s10s yield curve inverted in 1973, a comparable period of high inflation. The S&P 500 ultimately entered a bear market, falling 48%"
Buyer be unaware. https://t.co/RMStiRlHkt
— Mac10 (@SuburbanDrone) April 4, 2022
#recession … #Fed Pushing on a String edition
Not much of a buffer anymore against recession with Fed Funds Rate still close to zero π https://t.co/6exJeq05Oh
— Invariant Perspective (@InvariantPersp1) April 4, 2022
The Fed Cannot Undo the Damage It Has Already Caused
By raising interest rates the central bank cannot undo the damage from its previous easy interest rate stance. A tighter stance will likely generate various other distortions. Therefore, policy makers should leave the economy alone.