I know that good news may worsen rate hikes but we know that the interest rates are working. Hiring has been slowed by a lot, and unemployment is straddling. Unemployment at 3.5% is most definitely not gonna make the fed do a hundred. They already said 75, and even the fed themselves said they won’t pivot. So why can’t we take good news as bullish (besides very good news which is bearish) and vice versa, and make very bad news bullish?
I think it’s probably because the balance sheet is going to be reduced based on data. That’s the most important aspect for it. What other aspects make good news bearish though?
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