Australia's largest stock trading and investment forum Australia's #1 stock forum

XJO

Click for more information

0.30%

8,099.9 s&p/asx 200

XJO - Bear Posts only (Factors which might cause the markets to fall), page-5851

First 5851 Last

Share
Profile

Follow
Ewebute

6,125 Posts.

988

11/11/22

09:43

Post #: 64711042
Share

Originally posted by numis: ↑

Whether you're a bull or a bear, last night was only one number. The Fed wants to see a trend before any sort of pivot, whether you take the pivot to mean an easing of rates, slower rate hikes or no more rate hikes. So that means the data for the next 2 months will be crucial.

Although last night's number was better than expected, we've had previous CPI readings that were lower than expected but reversed course the following month so as I said lower CPI prints have to continue for the next 2-3 months..

Furthermore if history is any guide Volker raised rates into double digits, something like 17% in 1980. When a recession occurred he stopped raising rates prematurely and started cutting them even though inflation hit a high of 14.7% in just the prior month. This easing of rates ended the recession but inflation proved stickier than expected and remained above 12% and Volker was eventually forced to raise rates to a peak of 20% in the middle of 1981 before inflation steadily declined. So the Fed will want to be absolutely certain that inflation has been tamed before pivoting.

Expand

Thank you for your first post here. Welcome aboard.

Agree with your viewpoint on this.

XJO Value at posting: 6,964.0
2 Upvote

0 Great analysis

Reply

Top Stories

BRX

Belararox to grow copper footprint in Botswana with 4,286 square km tenure

CHN

Chalice jumps on Putin nickel export ban threat – but then there's bad news

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

NEC

Nine Entertainment announces its CEO is stepping down – on an ex-divvy day

GTR

GTI extends uranium mineralisation at Lo Hema through development drilling

SS1

Sun Silver confirms high-grade extension theory at Maverick Springs with 79.6 g/t intercept

3 stocks with antimony news on Thursday

MTM

Forget gallium: MTM says it's extracted gold from e-waste

CU6

Clarity progresses SECuRE trial with positive safety results

ASX Market Open: Local bourse to trade green | Thursday September 12

There are more pages in this discussion • 11,578 more messages in this thread...

First 5851 Last

Add XJO (ASX) to my watchlist

SPONSORED BY