The Fed Cheat Sheet Revealed

The Fed Cheat Sheet Revealed
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Authored by Eric Cinnamond,

In a recent post I noted, "…barring a consequential decline in asset prices, I believe the Federal Reserve will be forced to continue increasing rates and unwinding their bloated balance sheet."

While I did not have a number in mind when I used the word "consequential", I certainly didn't believe a flat YTD number on the S&P 500 would cause the Fed to alter their plans.

And that, of course, is what markets were led to believe yesterday after Jerome Powell stated the funds rate is "just below" the Fed's theoretical neutral rate.

Now that we have a better understanding of the Federal Reserve's tolerance for ....

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