Has the tide changed ?

Innervoice

Innervoice

It seems that Powell really made the market more cautious with his more hawkish than expected statements. We could actually be looking at a terminal rate above 6%.
This will increase the cost of capital as well as a lot of other things. The market did not expect this in my opinion.
The jobs report may or may not validate the higjer inflation numbers.
The big question- did Powell see the jobs number prior to his congressional speech yesterday?
This will get interesting.
 
Innervoice said:
It seems that Powell really made the market more cautious with his more hawkish than expected statements. We could actually be looking at a terminal rate above 6%.
This will increase the cost of capital as well as a lot of other things. The market did not expect this in my opinion.
The jobs report may or may not validate the higjer inflation numbers.
The big question- did Powell see the jobs number prior to his congressional speech yesterday?
This will get interesting.
More...

Let us get real. The real inflation rate is much higher than what the government puts out as the official rate. They take huge pain out of removing the cost of groceries, gas and oil. I got a 50% increase two months ago then, 100% increase from my gas bill this month alone. Prices of food still sky high. Biden is still releasing hundreds of millions of barrels of crude oil from the strategic US reserve. Wait till the US does not have a single drop left. Recession is coming and will hit the US after Europe. I think inflation will remain high for a while. Oil prices have not gone up by a huge deal yet. Oh, it is coming.
 
Gas is a significant part of spending and about 60% of crude is used by cars. EV sales in 2022 was 5.8% and up from 3.1% in 2021. It used to be less than 1%. IF this trend accelerate, it will reduce pressure of gas demand.
 
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