Prospector News Publisher Michael Fox is joined by The National Investor Chris Temple in A Review of the September 20 Fed Meeting. Although, the Fed held the interest rate intact there was plenty of fireworks in Chairman Powell’s statements and post rate announcement press conference.

What was apparent from his statements was a further rate hike before the end of the year is still on the table. Not only that it may be possible that more rate hikes occur through the first half of 2024. The dot plots also suggest that the number of rate drops that the market had been anticipating in 20245 has dropped in half to 2 from 4.

In a discussion over the Fed’s “Sophy’s Choice” of fighting inflation or a recession, Inflation would be the winner. Reading into that statement and the data showing inflation starting to tick upwards again, it means higher for longer in spite of similar data suggesting a recession in 2024 (Europe is already in recession) is increasingly likely.

All this bodes poorly for stocks. Bonds are likely to see rate increase (particularly the ten year treasury) and precious metals should start to see a bid.

Follow Chris https://www.nationalinvestor.com/