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Monday, March 20, 2023

More eggs on JPow's face

 

 So here is the poor JPow right now, a cartoon I created by using AI MidJourney

 

The Federal Chair faces an incredibly tough choice next week. No matter what he chooses to do, it seems to be a game he can’t win. If the Fed solve the equation for financial stability, inflation increases and causes a recession. If they solve for inflation, the risk of financial instability increases.

Here is my bet: the Fed will hike rates by 0.25% (25 base points) on Wed but voice a soft dovish tone on the inflation front and specifically note that financial conditions in the economy are stable. The market initial reaction will likely be welcoming and excited and will push the stock prices upwards. 

Regardless, the poor JPow has more layers of eggs on his face now. After all, we are experiencing a nationwide shortage of eggs and I suppose he doesn't care much for more eggs he has got😂

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