I think it’s quite tough to bring inflation down from the current 3% to 2%. The high interest rate environment is likely to stay for quite a while - which is what Powell himself has said.
But that doesn’t mean market will crash. Market will probably decline a lot if something breaks. But I would let bank on something that we don’t even know will happen or not
70620572 : well, first people said it be hard to stop inflation to keep spiraling up, then they complained inflation isn't cooling fast enough, then when it's at 3% it's like last percent is hardest. but just take a look at Spain cpi, when from 11 to 1.6 with no problem GDP staying strong
razo2 : inflation will not be 2% as there is a price gauging happening based on company earnings on consumer defensive companies. oil will rebound again. with higher housing interest rates. second wave of inflation will come back.
71789424 : Agree.
Another perspective: Let's take a look at how the Fed's balance sheet works. The 8t scale still shows that it's now a liquidity market. After drawing some of the water in '22, everyone has seen how the market reacts. Although it may not be relevant. Wait until the Fed recycles some more water, and you'll know if anyone else will empty their gloves, the White Wolves.
Strong Like Bull : 1 more increase just because they can.
70205595 : u can't stop inflation by just printing monopoly money non stop. It is time for our government to stop wasting money on these Worthless Socialist programs.
Strong Like Bull : Interest rates are already baked into share price too. We are expecting 1 or 2 more this year.
Cow Moo-ney OP Strong Like Bull : Probably 1 more