Business Insider: “Markets should brace for a turbulent few weeks as slow motion rate shock continues, DataTrek says”By datatrekresearch in IN THE NEWS
Excerpt from Business Insider quoting DataTrek co-founder Nick Colas:
.... ""By refocusing the market's attention on stubbornly high inflation, the Fed is implicitly telling us that they are comfortable keeping their current pace of balance sheet reduction for quite some time," DataTrek co-founder Nicholas Colas said in a note on Thursday.
The Fed is unlikely to stop its quantitative tightening regime even after it's done hiking interest rates, Colas added, and markets should be prepared for disappointment when it comes to a possible "Fed put".
"Thinking the Fed will step in to fill the breach, either by easing up on balance sheet reduction or going back to bond buying, seems wishful at best," Colas said. "The current slow-motion long-term rate shock has a way to go, in our view, and equity markets will struggle as it evolves. All this fits with our belief that we're in for a sloppy few weeks ahead"."....
Full article here on Business Insider.