Fed Waller spoils stock market party? – Equity.Guru

This post was originally published on this site

Fed Waller also said that although inflation in October came lower than estimates was good news, it was still ‘just one data point’. The Fed will need to see consecutive months of inflation heading lower. Waller also said that the 7.7% annualized increase in October is still ‘enormous’.

“We’re going to need to see a continued run of this kind of behavior and inflation slowly starting to come down before we really start thinking about taking our foot off the brakes,” Waller said, adding that he has been further convinced the Fed is on the right path because its rates increases so far have not “broken anything.”

Many market analysts believe the Fed will pivot because more rate hikes increases the risk of recession. The Fed says they see no sign of recession or the breaking of financial markets. This is where US NFP, or employment numbers, becomes the important data point as the Fed has been pointing to strong employment numbers not signaling a recession. But we have all heard the news of layoffs in tech companies including Amazon and Meta. Perhaps this will impact NFP and thus the Fed going forward.

This post was originally published on *this site*