With this new emergency “lending” facility for banks backstopped by $25 billion from the US Treasury, is it not more reasonable to think the Fed will continue with rate hikes rather than pivot?
Discussion
That’s how they pivot rate hikes.. non of it makes bloody sense
CPI is still 6%. I get it that’s a highly massaged number as it is, but that’s their metric and they don’t want to slow down unless they absolutely have to with it still being that high.
I think they do one more .25 hike then pause. CPI came in flat.. Technically mostly lower, but rents barely budged and that’s like 35% of CPI now.
So yeah I’m betting on another .25 hike this month and then pause.