Chief Market Strategist Ellen Hazen, CFA, appeared on Bloomberg TV and spoke with the Bloomberg.com markets team about whether the Fed and the market are on the same page. Ellen commented….
“The market is internally inconsistent right now. On the one hand it doesn’t want the Fed to have to panic, and so if rates go up — and what that means is that the Fed can exhale a little bit, the people can exhale and say, OK fine, phew we nipped that in the bud — the market is not going to price in cuts so soon, then in a perverse way, the markets get relieved by that because it reduces the probability of the Fed having to resort to more extreme actions.”