Daily Alert – Thursday 15th December 2022: Fed is hawkish, markets not buying it

Mark NugentDaily Alert, Dec 2022

Daily Alert – Thursday 15th December 2022: Fed is hawkish, markets not buying it

Good morning.

Yesterday saw all about the Fed. The interest rate was hiked by 50 basis-points to 4.5 percent, as expected. Fed Chair Powell reiterated his determination to get inflation to 2%. He said the Fed was not contemplating cutting rates in 2023, regardless of what the markets think. He is focused on the “extremely tight” jobs market and the pressure that higher wages put on inflation. The markets disagree, they see an interest rate cut in 2023 and a lower trajectory to the longer-term rate.

The Fed announcement had little impact on the markets. Risk sentiment was indecisive.

Later today we have rate announcements from the European Central Bank and the Bank of England.

On Monday I will summarise the positions of all three central banks as this will be very important for trading in 2023.

Tomorrow I will publish a brief video of last week’s profitable S&P500 trade.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE