Powell flip. It’s amazing what a loss in equity portfolios does for perceptions of “neutral”

Chart below is SPX.  When Powell said in an interview on October 3 that the Fed was a long way from neutral, stocks were near the highs.  The front WTI Crude Oil contract was over $76/bbl.  Now CLF is under $51/bbl.  Large declines in both of these markets caused the Fed to re-think it, and we’re now “just below neutral”.

Posted on November 28, 2018 at 3:27 pm by alexmanzara · Permalink
In: Eurodollar Options

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