Slope of Hope Blog Posts

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A ‘Goldilocks Market’ Arrives

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Post-FOMC, a ‘Goldilocks market’ is developing and an unbiased view is called for

Markets were apparently surprised by the hawkishness of the maiden voyage of the Warsh FOMC. Pre-FOMC we noted the following (per NFTRH 919 on June 14th):

Text discussing the upcoming FOMC meeting, current funds rate expectations, and projections for interest rate changes.

Warsh was even firmer than anticipated. But the net result is the same. The new Fed head indicates he is serious about inflation, and with the public’s inflation expectations recently ramping that is not a surprise. CME Group was surprised as usual but immediately got busy pulling in its rate hike expectations after FOMC.

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