FEAR THE FED

Posted March 13, 2022

Inflation is soaring.  Now Russia’s war on Ukraine means that Inflation will remain high for much longer than would have been the case otherwise.

Consequently, the Fed is going to be forced the tighten Monetary Policy aggressively.

Chairman Powell is likely to announce as much this Wednesday (March 16th) at the end of the Fed’s FOMC meeting. 

The financial markets are likely to anticipate all this in advance.

Unless there is some unanticipated breakthrough over the weekend, fear is likely to spread through the markets from Monday morning.  There is a real risk that the stock market could get battered on Monday and Tuesday before Powell speaks on Wednesday afternoon.

The latest Macro Watch video discusses just how hawkish Powell could be during his post-FOMC press conference.

It also warns:

• That Stocks could sell off sharply on Monday and Tuesday, for fear of what Powell may say on Wednesday,

• That the price of stocks and other speculative asset classes could continue to fall during the months ahead,

• That home prices could soon begin dropping in numerous cities around the country, and

• That the risks of the US falling back into Recession are rising rapidly.

Investors need to be aware of these risks and Fear The Fed.

Macro Watch subscribers can log in and watch this video now for all the details.

The video is 11 minutes long and offers 26 slides that can be downloaded.

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