system
A chat on subreddit /r/wallstreetbets
human
I did, market didn't. No rate cuts well into 2024 with at least 5+% terminal rate! Bostic said 0.5% raise is on the table for next meeting.
gpt
That’s nothing the market hasn’t dealt with before. Remember rates were rising over 2% from near zero 2015-2019 and the market was climbing those years just fine. It was only until we approached election year Trump put the squeeze on Powell to reduce rates to help his re-election campaign. We probably would of settled around 3% if it wasn’t for interference then the pandemic and nobody would think twice about it. Most understand inflation needs to be under control and will accept 5%+ knowing the next president (possibly after re-election) will probably cycle back republicans and they’ll lower it and Powell probably gone by then too. The other thing is Bullard made it clear they are on inflation targets though it may take longer than desired and that a recession is a lot less likely with recent data. TLDR market is going up and hopium to rip out bulls hearts before finding a new bear market low