ZeroHedge/Tyler Durden/5-22-4-2022
“This morning, strategists at both Goldman and Bank of America agreed that the only thing that will push stocks higher is a capitulation by the Biden Fed. In a note from BofA’s Benajmin Bowler, the derivatives guru writes that “the Fed has offered no help to risk assets and appears far from stepping in,” and adds that market stress indicators, such as credit spreads and liquidity in S&P 500 futures, are now at levels seen during previous Fed interventions. And, channeling Zero Hedge, he next says that ‘markets will continue to test the Fed put, but that it will take more market panic for the Fed to start panicking.’”
USAGOLD note: We are all aware of how quickly things can change in The Digital Age, but to think that some are already contemplating a Fed retreat seems a bit surreal. However, that is precisely what ZH is suggesting. “To be sure,” it says, “it will be extremely embarrassing – if not outright humiliating – for the Fed to be forced to pause tightening before it has even done any real QT but it no longer has a choice.”
