The #FederalReserve is likely pausing rate hikes, the #DebtCeiling will get resolved (always has, ignore the political theater), with these headwinds subsiding, it's starting to look like a #BullMarket
Tomorrow's inflation day! Some interesting notes from consumer survey released yesterday....
inflation expectations declined at the short-term horizon, but increased slightly at the medium- and longer-term horizons. Labor market expectations deteriorated slightly, with unemployment expectations and perceived job loss risk increasing and job finding expectations decreasing. Perceptions and expectations of credit conditions were mixed.
Ok, so the market is expecting the Fed to stay the course (Graph 1), but more interestingly, the rate hike expectations come down as we move into the future (Graph 2, Jan 2024).
