No, the Federal Reserve will not pivot!
Not this year atleast.
I keep reading news that inflation is going down and the feds would pivot soon but I hate to break it to ya, they ain’t gonna pivot anytime this year. They’re gonna keep it at whatever terminal rate they decide on and keep it there for the whole year which will inevitably cause a recession as more and more folks feel the pinch down the road.
However if they do pivot then HIP HIP HURRAY right? WRONG! Thats so much worst for the economy because inflation would sky rocket again and they’ll be forced to jack the interest rates even higher on the second run. How would the markets react? It’ll take a nose dive cause its a repeat of 1974 and 1980.
The latter scenario is less likely therefore we won’t see a pivot soon.
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