Posted 12/1/2023, 11:03:00 AM
Powell Faces Uphill Battle Convincing Markets Rates Will Stay High as Inflation Eases
- Jerome Powell speaking Friday, last chance to set expectations before Dec. Fed meeting as blackout period starts Saturday
- Powell facing challenge convincing markets rates will stay high through 2024 as inflation eases
- Markets now pricing in rate cuts starting as early as March 2023 despite Fed's higher-for-longer stance
- Bond yields plunging (2-year down 27 bps this week, 10-year down 15 bps) as rate cut bets increase
- November big month for equities (MSCI World up 9%) and bad for dollar (dollar index down over 3%, worst month in a year)