- A weakening labor market would normally get the Fed to turn dovish. However, Mr. Powell and the Fed cannot turn dovish imminently. Nevertheless, Wall Street is still hoping that the Fed put is nigh.
- But record-high inflation is the primary problem facing consumers and corporations. Chair Powell finally understands this. Therefore, the Fed has been forced to adopt the most aggressive tightening monetary policy since 1980.
- In spite of this, the Fed is busy trying to convince investors why this current tightening cycle won’t end in recession and a stock market meltdown like nearly every other time in history.
- Will 2022 turn out like 1994, as the perma-bulls would have you believe?
For further details see:
Powell's Crash Landing