In fact, the recent speeches of Fed officials unanimously emphasized the determination to tighten, and tonight's PCE exceeding expectations is reasonable. You can also follow tonight's speech by Federal Reserve Vice Chairman Brainard.
On Thursday, Federal Reserve FOMC this year's voting committee and Cleveland Fed Chairman Mestre expects interest rates to be slightly higher than the Fed's median because inflation is expected to be more persistent. The Fed needs to continue to raise interest rates to raise the target rate for federal funds above 4%. On the same day, St. Louis Fed Chairman Brad, known as the "Eagle King", said that the Fed will not stop tightening and that the Fed must quickly raise interest rates to reach a minimum and appropriate level to deal with inflation. Brad said inflation will start to fall in 2023, but the pace is uncertain. As the Fed reduces inflation, the United States is likely to fall into recession, but this is not the basic situation in the United States.
On the other hand, from a geographical point of view, Russian President Vladimir Putin today attended the signing ceremony of the treaty on the integration of Ukraine into the Russian Federation and delivered a speech. Putin said Russia was ready for talks and called on Ukraine to immediately stop military action and return to the negotiating table. Russia will have four new regions and will strive to improve the level of security in the new regions and defend Russian land by all means.
Us stocks may still have room for downside.
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