.#Stocks just took a leg up on #FederalReserve Chair Jay #Powell characterizing financial conditions as having tightened quite a bit in the last year. (Not sure which index he is using. The most widely cited ones show overall financial conditions as loose as they were a year ago)
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Global Central Bank Update: -The Fed hiked rates for the 8th time in the last year, 25 bps increase to 4.50-4.75%. This is now the highest Fed Funds Rate since October 2007. https://t.co/edLYMkpjUW
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Financial conditions are becoming less restrictive the more Chair Powell talks. Real yields on 2-year notes have fallen to near the lowest in two months. https://t.co/RaOxBpZC7B
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Reading the Fed Kremlinology, and I understand why people parse these things carefully. But step back and consider how toned down the debate has become. Just the other day influential economists were insisting that we needed to go through something like this 1/ https://t.co/dRehEq1N7z
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The #Fed hiked by 25 bps as widely expected. Those hoping for a change to the “ongoing increases” phrase are disappointed as the Fed is not ready yet to signal an imminent end to the hiking cycle. For the press conference, look for journalists to push Chair Powell on the outlook.
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After today's 25 bps rate hike, the Fed Funds Rate has moved above Core PCE (the Fed's preferred measure of inflation). Since 2008, the only other period w/ a Fed Funds Rate above Core PCE: Oct 2018 - Sep 2019. That ended with Fed rate cuts in 2019 & a move back to easy money. https://t.co/rlampX2lnL
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Now we're debating how many modest rate hikes are needed to produce moderate economic cooling, which may or may not involve some rise in the unemployment rate. Serious and hard questions, but apocalypse not 2/
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One company after another is laying off white collar workers while keeping blue collar ones. Here's Rivian: https://t.co/1u8nYpBqSI
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2 great moments from when @TraderBryce crossed $1 million in trading profits on Monday, 5 years into his journey & 1 week before his 25th birthday! Get inspired, retweet & bookmark this & promise to study hard enough to become my next millionaire https://t.co/occ8wKmT5U student! https://t.co/g0v699qIPZ https://t.co/Rt5BNzzRLe
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The #FederalReserve doesn't seem to be able to overcome the financial conditions paradox With such conditions already looser than when the Fed started its hiking cycle, #markets took virtually no time to shake off the initial negative price action due to the more hawkish language
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Facebook's Q4 revenues fell 4.5% over the prior year, the 3rd consecutive YoY decline. The stock is up 18% in after hours trading. $META https://t.co/y2Fk595sau
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The Fed's rhetoric sounded hawkish in its latest statement, but was on net dovish since the central bank could have hiked by 50bp rather than 25bp: BofA's Michael Gapen via @bsurveillance The market is watching what the Fed does, not what they say.
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Federal Reserve expected to raise interest rates 0.25% at its first policy announcement this year https://t.co/ROM7lxTme2 by @Jenniferisms https://t.co/xex8an3DWI
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