The Market: Rate Hikes Cometh. BTFD

"H4L Rates and Stocks" monetary policy comes into full view with today's objectively hot CPI report.

Apr 10, 2024

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Discussion

As discussed in the post below, FED Chair Powell has been reiterated with force that the Fed would “use its tools” to keep economic growth and the labor market strong while bringing inflation back to target. Those “tools” are straight forward: higher-for-longer (H4L) interest rates and stock prices. H4L rates keep a lid on realized inflation and inflation expectations while elevated stock prices keep economic growth and the labor market strong. This “H4L Rates and Stocks” monetary policy comes into full view with today’s objectively hot CPI report.

The Fed: Dissecting the "Fed Put"

The WOTE

Apr 5

Programming Note I started writing this note pre-market on April 4 before losing power for 24 hours starting at 10am EST. As such, none of it has anything to do with financial market price action the last two trading days.

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The Weight of the Evidence

The Market: Rate Hikes Cometh. BTFD

"H4L Rates and Stocks" monetary policy comes into full view with today's objectively hot CPI report.

Discussion

The Fed: Dissecting the "Fed Put"

H4L Rates

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