Hi HODLers,
The FED might have popped this last Bear market rally.
As most expected the FED hiked rates by 75bps today. The interesting part was mostly about next hike and comments about the current view of the Federal Reserve.
Let me be clear, there was not a lot of dovish comments in this press conference. Except maybe tthat Jerome Powell stated he would take into account that some data might be lagging latest interest rate hikes. He was mostly referring to Housing or used cars for example.
These 2 big components of inflation index (CPI) are affected by interest hikes by the FED but it might take time to be reflected in these assets values.
Apart from this, he made it clear that he is ready to havoc the market until he sees clear indications that inflation is under control. He ackwnoledged the impact on the population but believes it is better to take this hit now that take the risk to see a long period of mid-high inflation. I agree.
Jerome Powell will not flinch and he prefers to be remember as the one that crashed the US economy than be the one who let hyperinflation out of the Pandora box
US Stock Indexes performance post FOMC
One interesting thing is that the biggest NASDAQ blue chip stocks have been the ones suffering tremendous drops in the past weeks.
- AMZN, META, GOOGL, AAPl, MSFT...
Bitcoin is down 1.4% and Ethereum is down 4.2% at the time of writing. I expect these to go lower and as crypto markets are never closed, we might see some volatility and big dumps overnight.
ETH Price
Stay safe out there,