To The Moon

Yesterday, Atlanta Fed President Raphael Bostic said he basically expects two more rate hikes to bring the terminal rate to 5.1%, which is consistent with last December's forecast, but if the economic data continues to be stronger than expected, he may support another 1 number of rate hikes on top of that, or even not rule out 2 numbers to bring the terminal rate above 5.6%! And Powell is going to speak, if he also so state that the Fed's March dot plot may again raise the terminal interest rate, then this will greatly change the optimistic expectations of the financial markets, and not only the stock market, even the housing market may continue to sluggish after a good stabilization. According to a simple and clear headline in the Wall Street Journal, the real estate market is showing signs of thawing! The main reason, of course, is that after reaching a high of 7% last November, 30-year fixed mortgage rates have now fallen a full 1% to 6%, and optimistic expectations of interest rates topping out have caused mortgage rates to plummet, thus stimulating the housing market. Related data: mortgage applications increased by 15%, refinancing increased by 50%, and pending home sales increased by 2.5% last December, which is usually a leading indicator of the housing market's thawing status. If the housing market thaws quickly, then it will be harder for inflation to return to the 2% target. However, if the Fed starts to make hawkish statements and the market takes them seriously enough, then it could cause mortgage rates to rise again and the housing thaw could become short-lived. @MillionaireTiger @TigerStars @CaptainTiger @MaverickTiger