Daily Alert – Thursday 16th June 2022: Fed pushes US economy towards recession

Mark NugentDaily Alert, June 2022

Daily Alert – Thursday 16th June 2022: Fed pushes US economy towards recession

Good morning.

Well, they did it. The US Fed increased the interest rate by 75 basis-points as had only been expected since last Friday’s poor inflation number. The USD, US equities and US 10-year yield barely moved. However, after some overnight cogitation, relative to prices just before the announcement, equities are down (recession fears), the yield is up (expectation of more and higher hikes to come) and the USD is flat. Pretty much as expected.

Today we have the Bank of England where we expect a fifth consecutive hike.

The markets have been nearly impossible to trade so far this month. Remember, making a conscious decision not to trade is a legitimate approach, and has been my decision more often than not.

I think that’s it for me for this week.

Have a great weekend when it comes.

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