Stocks & Crypto Surge As Fed’s Waller Jawbones ‘100bps Hike’ Off The Table

Stocks & Crypto Surge As Fed’s Waller Jawbones ‘100bps Hike’ Off The Table

Following yesterday’s soaring CPI which prompted Nomura and others to call for a 100bps hike in July – and the market to price in a 75% chance of it – The Fed has unleashed Christopher Waller to jawbone back expectations this morning, courtesy – once again – of WSJ’s Nick Timiraos who quoted Waller as saying:

“What the CPI report did “was anchor–for me–that we are going to go…75.”

“You don’t want to overdo the rate hikes. A 75 basis point hike is huge. Don’t think because you’re not going 100, you’re not doing your job.”

The instant reaction is very clear… expectations for a 100bps hike plunged…

Stocks and crypto surged on the relief…

Anyone remember Bostic’s infamous “pause in September” comments that triggered a brief short-squeeze in stocks before being completely dismantled by Brainard.

Developing…

Tyler Durden
Thu, 07/14/2022 – 11:56

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