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The Fed Got A Lot More Hawkish. Markets Say It's Still Not Enough.

NowPress play to follow along0:00 / 21:29
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ticker lesson

Breakdown

0:14lesson

Market reaction to Fed's hawkish turn

  • Fed hawkish turn expected
  • Market reacted negatively
  • Hike baked in
  • S&P 500 down day
  • 7,500 level next inflection
2:39lesson

Gold and dollar response to Fed

  • Gold constrained response
  • Dollar rallies
  • Euro weak
  • Pound special case
  • 7,500 level support
5:25lesson

Bitcoin and bond dynamics

  • Bitcoin holds range
  • Bonds show divergence
  • Crude oil momentum loss
  • Potential pullback in crude
  • Bond relief possible
8:10lesson

Fed policy statement and projections

  • Fed statement hawkish
  • GDP expectations upgraded
  • Inflation expectations higher
  • Rate path upgraded
  • 2027 rates flat
10:53lesson

Fed funds rate and market expectations

  • Fed funds rate hike
  • Majority for more hikes
  • Market expects 74% second hike
  • Fed less hawkish than markets
  • Bond relief not material
13:28lesson

Central bank follow-up and inflation

  • BOE expected to hold
  • Inflation data weak
  • BOJ rate hike expected
  • Yen intervention question
  • Pound pullback possible
16:13lesson

Positioning and market outlook

  • Long gold, short dollar
  • Long Bitcoin via call vertical
  • Short stock side worked
  • Silver held up
  • Debasement trade down but not out
18:38lesson

Macro money summary and future outlook

  • Macro money returns tomorrow
  • Follow-up on BOE and BOJ
  • Potential dollar pullback
  • Debasement trade story ongoing

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