For months, the markets have been panicking about massive rate hikes coming at the March Fed meetings. But recently, Chairman Powell signaled a change of heart. What does this mean for the future of the market?
Avoid This Rookie Crypto Error at All Costs
Most crypto traders think that there’s a shortcut to success in the crypto market. And they all fall into the same trap. In this brief presentation, I’ll explain how to avoid this mistake, and the #1 way (in my eyes) to trade cryptocurrency.
We’ve been talking about it. CNBC’s been talking about it. CNN’s been talking about it.
Rate hikes. They’re coming fast and furious in the face of 40-year highs in inflation.
Or at least, that’s what we thought.
Many expected that the upcoming Fed meeting in March (the 15th and 16th) would carry at least a 0.50% interest rate increase, followed by more hikes at future meetings.
That was the common wisdom. And most believed that expectation was responsible for a lot of the pre-Russia volatility in the market.
But last week, Chairman Powell signaled that he might be having a change of heart.
Last week, when Powell was testifying before Congress, he admitted that the Russia-Ukraine situation injected new uncertainty into the markets and the economy.
He made it clear that he still expects rate hikes…
But he leaned towards only moving a quarter of a percentage point at a time, as needed.
He also suggested the effects of inflation would be relatively short-lived.
Whether that’s true or not remains to be seen.
The reality is, the market still won’t like rate hikes, but a 0.25% jump is easier to swallow than 0.50% or more.
The markets have had a tough go of it so far this year with the inflation uncertainty, the Russian crisis, and everything else.
The SPX seems to have found a bottom on the first day of the Ukraine crisis, but where we go from here isn’t clear. My expectation? I think the somewhat-bullish momentum continues for the time being, and maybe even increases. But time will tell.
Either way, the CNBC talking heads will be ranting and raving a bit less now that the rate hikes won’t be as bad. And I guess that’s good for those of you who watch!
Jeffry Turnmire and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.
Daily Profit Publishing and Jeffry Turnmire do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.
We are not licensed to provide you personalized investment advice. Nothing in these communications should be construed as personal investment or financial advice.
0 Response to "Powell getting cold feet?"
Post a Comment