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The June FOMC meeting
The FOMC is set to meet next week on Wednesday, and it was widely expected, not that long ago, that the Fed would start lowering interest rates at this June meeting. However, the Fed is not
The Fed Preview: Hawkish Turn Straight Into The Recession
Summary
- The Fed is likely to signal less than 3 cuts in 2024, possibly no cuts at all, which is a hawkish turn and signals a "higher-until-recession" policy.
- The Fed is also likely to increase the projected unemployment rate and inflation figures for 2024.
- Given the "higher-until-recession" policy, the S&P 500 is facing a recessionary bear market, even though the pain trade is the uptrend continuation as the euphoria rages.
Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.
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