Hot Take Time: That Was The Last Rate Hike of 2022
The Federal Reserve raised the funds rate by another 75 basis points yesterday. Naturally, the Nasdaq responded by closing the day 4% higher. Buckle up friends...
I don’t know how much I’ve written about it here or elsewhere, but the running joke with established order Doomers like myself is that when someone in a position of power says the word “tools” in the context of solving some sort of societal threat, it generally means they’re either terrified, unprepared, or lying about their actual abilities; it most cases, it probably means all three. With this in mind, how long do you think it took Jerome Powell to say the word “tools” yesterday after he started speaking?
Any guesses?
Answer: 12 seconds.
If you want to watch the whole thing, have it at. But it’s not necessary. Because the Fed is done this year. The hiking cycle is over. To be clear, they’re not saying that, I am.
The data hasn’t been updated online yet. Because, you know, I’m sure the Fed is busy at the Hamptons already and just forgot to update the rate data for today. But regardless, that was it. We’re at trend resistance. That was the top of this cycle. That’s the official prediction from ya boi.
All that said… six months from now, it is possible we could see a Fed funds rate of 4%. If that happens, I’ll wear it and admit that I got it wrong. But if that actually happens, it will be because the central bank really doesn’t understand what it’s doing or the hikes are simply part of a larger plan for intentional chaos and government dependency. We just got our second straight negative GDP print this morning at -0.9%.
And our three highest weeks of initial jobless claims year to date were printed in the last 3 weeks. Don’t be worried though; we’re not in a recession.
I would love to show you why buying gold right now might make a lot of sense. I’d love to overlay Gold’s price per ounce with recessions and how the price generally reacts to a recession because of the typical policy response to the recession. But I can’t. For some reason, the Fed removed that data from it’s public database in January. I’m sure it’s nothing. Luckily, I have the next best thing…
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