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US indices are weakening so far today 🩸

In his statement, Jerome Powell said that the Fed still needs to do more to curb inflation. "The process of bringing inflation back down to 2% still has a long way to go," Powell said. As a result, the Fed is now expected to raise rates by a quarter percentage point at its next meeting in July, after putting rate hikes on hold at its last meeting last week.


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It's not so much a surprise that rates may go up for the rest of the year. However, investors are now uncertain whether it will only be by 50bps.

What do you think? Will it end up being "only" 50bps by the end of the year?

Well, the correction won't be that big. Powell speaks today, and a week from now the markets won't even remember.

Yeah, that's kind of what I'm thinking too, it's just that investors are still determined to buy anyway and the drop will be bought back in a little while. 😁 But it's nice to have some of that correction down.

Well, there it is, it must have gone down and that's good, we'll be able to grow again. 50bps will be for sure, and if more, then just as said, it depends if he wants to take into account the banks. I'm sure it won't, or I don't believe there will even be a turnaround as I've already seen a few cries on the net that perhaps they might cut back. Inflation is still there and will be, although it has come down now, but the core one is not moving much and the show is on hold.

2% is still a long way off and the markets are overinflated, it's good that it's at least cooled off a bit.... btw I've now looked back at the 2023 predictions (the ones the experts wrote last year) and it's funny that nobody actually gets it right. The average prediction for this year was: Bigger jump in inflation decline, rates won't go up until Q3 or so, we'll have a recession by mid-year, and we'll start to approach a bull market towards the end of the year 😀 I write this for fun, I just like how no one knows but everyone wants to predict.

50bps is the max in my opinion, they can't afford more because of debt and banks.

It's just that they're getting a little bit off track here, if they want inflation to 2% as soon as possible, they can't cut back and they have to stick to the strategy. If they want to watch the banks and the debt problems, they'll have to settle for higher inflation for longer. The US debt is going to be a problem anyway, they just put the problem off.

That is true, but the question is whether the solution to debt is not inflation. It would reduce their debt a lot, although the cost of inflation would be huge.

This is the beauty of the market. It's been said that rates can go up in the rest, a few days later the Fed head talks and confirms it and the markets go down 😀 For me 50bps is the low, the data in my opinion won't be as favorable as the year progresses.