We are going through a very strange period in the markets. Powell, at the last meeting, kept interest rates steady citing energy prices as a reason.


Moreover, 3 members said rates should be raised, and inflation data came in above expectations.
Despite this hawkish meeting and high inflation data, BTC, NASDAQ, and S&P 500 rose.
The DXY dollar index pulled back.
Powell's hawkish stance is now just noise. Because the market is pricing in Kevin Warsh, who will take over the chair on May 15, not Powell!
Warsh has signaled that the Fed will change its entire communication style and shift to a more rational, loose policy.
I think the markets, which believe that in two weeks the reins will be in Warsh's hands anyway, are already pricing in a rate cut.
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