Data calls for rate hikes, the market insists on cutting rates? Is the market collectively "deceiving itself"?
Jobs are booming, inflation is soaring, and the data clearly signals "it's time to raise rates," but the market and the Federal Reserve seem to ignore it, wholeheartedly sticking to the idea of cutting rates?
Data: Strong employment, excessive inflation, conditions ripe for rate hikes.
Federal Reserve: All FOMC members are not considering rate hikes.
Market: Interest rate futures are pricing in at least two rate cuts this year, with even a third possible.
This is not an economic issue
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