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Wednesday, January 19, 2022

The true economic situation in the US. - Part 2

https://finance.yahoo.com/news/traders-pricing-risk-first-half-195951919.html

Did we spook the market again with our latest post below? Hahaha!

http://sg-stock.blogspot.com/2022/01/the-true-economic-situation-in-us.html

The traders are pricing in a 50bp hike in March 2022 now.  Well, it makes sense for them to price in a 50bp hike in March or more aggressive hikes for 2022 because the current US FED (Powell) is a very political person.  He will try not to have aggressive rate hikes in the latter half of 2022 because this will ruin Biden's election.  In a nutshell, the current US FED is no longer an independent entity.

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