The new head of the Fed emphasized that he sees inflation as a “choice”, which the market seems to be interpreting as a sign that he is willing to do what it takes to prevent prices from spiraling out of control.
In addition, he abstained from providing guidance on interest rates, as he believes that this is not useful in any way to accomplish the Fed’s dual mandate of achieving price stability and fostering economic growth.
“Absent, also, is so-called forward guidance, which we agreed was not well suited to the current policy conjuncture,” Warsh clarified about this matter.
Analysts Now Expect a 50bps Rate Hike by September
Today’s price action confirms this view, as prices are dropping hard as market participants have increased the odds of a rate increase this year and even see high odds of a 50bps hike.
The cryptocurrency market suffered another sharp bout of volatility, with roughly $180 million in leveraged positions wiped out within a single hour as prices across...
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