It appears the market had kidded itself once again that the Fed would fold but Fed Chair Powell reiterated that inflation is well above target but the taper is on track to begin soon and end by mid-2022.
He did note that "it's time to taper... not time to raise rates..."
But markets are looking through that and are pricing in an increasingly hawkish Fed. Traders are pricing in a 70% chance of rate-0hike by June 2022, and almost 1.5 rate-hikes by Sept 2022 and notably more than 2 rate-hikes by Dec 2022...
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Bonds are down...
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Stocks are tumbling...
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Bitcoin is red on the week...
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But the USD is higher...
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Will an equity crash prompt Powell to reverse his "time to taper" plan?
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