- On a wide range of typically market-sensitive topics today, investors seem inclined to ignore both the rumor and the news, assuming that whatever happens, the Fed will be there to backstop any fallout.
- Expectations of stickier inflation have already brought forward the calendar many investors have in their heads for interest rate increases, with the consensus now being for at least two hikes sometime in the second half of 2022. The rumor has gained enough traction to become conventional wisdom.
- Each piece of actual news, such as today’s CPI release, would seem to confirm the rumor. Yet, neither rumor nor news seems to move the sentiment needle much one way or the other.
For further details see:
Ignore The Rumor, Ignore The News