We have reached a point in this bear market cycle where some investors and traders have decided to anticipate the Fed’s move and try to get ahead of whatever happens. all right. Everyone is frustrated with months of lost money and faith. But the Fed is doing its job and it will take time to bring equilibrium to the out-of-control economy.
do not oppose current policies
Don’t like this hawkish monetary policy? Want to see the end of rate hikes? Unfortunate. If you want to time the shift to a more dovish policy, you’re going to get burned.
Sadly, Fed policy conditioned us to expect large amounts of liquidity in uncertain times. In fact, for over 35 years, the Fed has been the backstop for market-moving events. Flooding the economy is one of his tools for the Fed to create an environment that supports economic recovery. The unexpectedly rapid recovery from the COVID-19 pandemic and subsequent inflation clearly shows that printing a road to prosperity can have serious consequences.
It took a while, but the Federal Open Market Commission finally recognized the penalty for having too many dollars in the system. They are now trying to undo the damage done by decades of accommodative monetary policy. Can they do it without destroying the economy and markets? Did.
The Federal Reserve is doing its job
Today things are very different. At the time, inflation had not run out of control. The Federal Reserve (Fed) has repeatedly said it is committed to reducing high inflation by continuously raising interest rates. If they remain steadfast, it will do well, and our economy will benefit from these restrictive policies years ahead. Short-term pain for long-term gain. .
So to anyone saying inflation has peaked and it’s time for the Fed to pivot, stop! Be aware of what’s happening around you. There are already many signs that the economy is cooling, but it was desperately needed. The Federal Reserve, for all its faults, will tell us when to move away from this hawkish policy. But trying to call it early is a fool’s business. Let others guess wrong. Hold your money, be patient and keep playing in the bear market playbook.