Start Of The Endgame?
Mind you, it is still too early to pull back, and the Fed won’t. It will be 75 bps today and guidance to 50 bps at each of the next two meetings. But it is not too early to start to point to what comes after that, which is likely to be less hawkish. Expect more comments on the rising risks of a slowdown and discussion of what changes in policy will be appropriate then.
We are at the start of the endgame on the Fed’s anti-inflation policy. Watch the comments to see just how close the Fed thinks we are.
Brad McMillan is the chief investment officer at Commonwealth Financial Network.