Chicken.

ANGLES. · Jan 22, 2023 · 7m

Financial markets and the Fed are playing a game of chicken. The Fed continues to wheel out its own people to double-down on their position that interest rates will be shortly be raised to above 5% and will stay there for ages until inflation is unquestionably showing signs of being 2% again, like it was in the good old days.

Financial markets, as shown by fed funds futures rates and trader sentiment, are calling BS on this. They insist that upcoming data will sway the Fed to stop raising interest rates soon and possibly even force them into a pivot back to lowering them before year-end due…