[Chorus]
He's Jerome Powell, the Fed chair
His words, they give the market a scare
No matter the news, he'll have the last say
He's Jerome Powell, the market's way
fin.
[Verse 3]
He's the captain of the ship, the captain of the boat
The man of the hour, the one to quote
He's the leader of the market, the one to trust
His words, they make the traders adjust
Once the stickiness of inflation becomes consensus (as @UrbanKaoboy has also pointed out), markets will likely surprise further on the downside.
Businesses will have to ramp px into a weakening economy. Those without px power will get suffer.
More pain for consumers to come.
1/25. Central question of finance today is simple: When will inflation peak & how fast will it fall? For equities, earnings revisions are also important, but still a distant 2nd in determining ultimate drawdown in S&P. Atlanta Fed says we have a problem:
https://t.co/GnfRwWmYqn
@shortl2021 Yes, although I believe the fact that the "current inflation levels are much closer to past inflation peaks" also suggest tt there might be some nuance to this:
inflation could be "peaking soon", but grind down more slowly than consensus thinks.