Powell shows his hawkish possibilities.
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Started by joj - March 21, 2022, 5:16 p.m.

He said something to the effect of having a willingness to hike it a 1/2 point.

The market dropped sharply but recovered nicely by the close.  (Bullish action IMO)

Gold also should have broken but held in there and closed higher.

By metmike - March 22, 2022, 12:50 a.m.
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Thanks joj!

By bear - March 24, 2022, 1:13 p.m.
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can i give an wierd analogy?  forgive me, but i think powell is a joke. 

imagine a person driving 110 mph thru the school zone ,  which has a 20 mph speed limit.  and you yell at them to slow down.  so the person speeding slows from 110 to 105,  and they pretend like the are now being more responsible (less reckless), because they slowed down a little.  and then they say,... ok, i'll think about slowing down to just 100 mph.  (as if they now recognize that they did not do quite enough by slowing down to just 105).  

raising rates by just a quarter point, and then saying maybe they need to do a half point is not near enough.  they are not hitting the brakes.  they are not taking their foot off the accelerator, they are just barely letting up a little.  

if inflation is 8%, then they need to shove rates up to about 8% to kill inflation.  yes, that will cause a recession, but they have been too reckless for too long.  they need to slam on the brakes to kill inflation.  

powell does Not have the brains or the huevos of volker.  

By metmike - March 24, 2022, 3:03 p.m.
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Thanks bear. I liked the analogy very much.

By joj - March 24, 2022, 8:48 p.m.
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While I tend to agree with you, I suspect you're more of a hawk than I am.  I think Powell has gone from 110 mph to 70.

I also have to point out that the Fed has a dual mandate.  Inflation and employment.  From a selfish point of view I'd love it if he slammed on the breaks and makes my savings last longer.

There has only been one Paul Volker in our history.  The history of the world is of nations debasing their currencies.  Volker was one of a kind.

And more to the point of my original post.  Gold and Stocks had bullish action and 2 days later they have followed through nicely.