SPXE - Fed Pivot? Traders Thwarted Again As Inflation Just Won't Go Away

2024-04-28 11:44:14 ET

Summary

• Traders betting on a return to low inflation and low interest rates have repeatedly stumbled as inflation continues to be a problem.
• Despite mixed economic fundamentals, stock market valuations remain euphoric, which is one reason I'd speculate the Fed will be forced to keep rates higher for longer.
• The Fed is now overwhelmingly expected to keep rates steady at this week's meeting, with the first cut currently projected for September.

They say in thirty years, a burger and fries could cost $16, a vacation $12,400, and a basic car $65,000... No problem. You'll eat in. You won't drive. And you won't go anywhere.

TIAA-CREF advertisement ( placed in The New Yorker in 1994 ).

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