If you take Fed officials at their word, the obvious trade is to wait for risk assets to sink in 2024 because the Fed will hold rates too high for too long. The market doesn’t wait until it’s ‘sure’ about anything.
Of course, the Fed could be swayed and maybe Bostic isn’t being completely honest. What if they’re ‘sure’ inflation will fall to a 2 to 2.5% range? That’s not so bad and certainly not worth sacrificing the economy over.
This article was written by Adam Button at www.forexlive.com. Source