SP500: Expect The Fed's Major Hawkish Turn In December
- I believe the Fed is expected to make a major hawkish turn in December, revising the SEP projections for inflation, unemployment, and Federal Funds rates.
- In addition, the Fed is likely to pause the normalization policy in December.
- The S&P500 fell sharply when Powell warned that the Fed is "in no hurry to cut", and the selloff is likely to accelerate as the December FOMC meeting approaches.
Kent Nishimura/Getty Images News
The premature September cut
The Fed started the easing cycle in September with the jumbo 50bpt cut, and followed with another 25bpt cut in November.
The easing cycle started in response to the weak July
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