IPFS News Link • Economy - Economics USA
Fly Me To The Moon, Jay... Let Me Trade Among The Stars...
• https://www.zerohedge.com, By Michael EveryFrank analysis, tunes, and quotes
Please see our Fed-watcher Philip Marey's take on the latest FOMC decision here for a thorough breakdown and forecast update.
In a Frank summary, the FOMC came very close to implying only two 25bp cuts this year, not three; reduced the number of cuts expected further out; their economic projections raised the level of GDP growth, didn't expect any increase in unemployment, and saw core PCE inflation over target until 2026; and the market initially sold off.... Until FOMC Chair said even if rates wouldn't go back to zero, there was uncertainty about even that; the Fed would need to pivot fast if unemployment rose sharply; and refused to address the loosening of financial conditions evident to everyone with a pulse. In short, Powell started crooning an old Sinatra tune:
"I like rate cuts in June, how about you? I like Wall Street's tune, how about you?
I love a buy-side election boom when due; I like buy-all-the-dips, bulls-are-right yacht trips, how about you?
I'm mad about unbalanced books, can't get my fill; And Bitcoin and gold's looks give me a thrill
Cutting rates whatever data show; When inflation ain't low may not be new
But I like it, how about you?"
And markets, and the dollar, swooned as another Sinatra classic immediately came to their minds.
"Fly me to the moon; Let me trade among the stars
Let me see what stonks are like; On Jupiter and Mars
In other words, don't hold my rates; In other words, Jay, cut them
Fill my trades with song; And let me punt for ever more
You are all I long for; All I worship and adore
In other words, please be true; In other words, Jay, I love you"