• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

JPMorgan economists evoke God in a chilling research

June 19, 2022
in Finance
Reading Time: 4 mins read
A A
0
JPMorgan economists evoke God in a chilling research
0
SHARES
7
VIEWS
ShareShareShareShareShare

This post was originally published on Tker.co.

JPMorgan’s global economic research team just published note titled: “They will know I am the lord when I lay my vengeance on them.“

The quote comes from Ezekiel 25:17. It was popularized in “Pulp Fiction” by fictional hitman Jules Winnfield — portrayed by Samuel L. Jackson — who would recite the verse before dispatching his marks.

Led by Bruce Kasman, JPMorgan’s economics team employs the chilling language to characterize the Federal Reserve’s “decisively hawkish shift“ in the wake of recent hotter-than-expected inflation reports.

JPMorgan’s global economic research team just published note titled: “They will know I am the lord when I lay my vengeance on them.“

(Source: MovieClips/YouTube)

The quote comes from Ezekiel 25:17. It was popularized in “Pulp Fiction” by fictional hitman Jules Winnfield — portrayed by Samuel L. Jackson — who would recite the verse before dispatching his marks.

Led by Bruce Kasman, JPMorgan’s economics team employs the chilling language to characterize the Federal Reserve’s “decisively hawkish shift“ in the wake of recent hotter-than-expected inflation reports.

While downside risks to the economy have intensified, the economists believe “that central bankers have not completely forsaken the expansion. While the Fed should move forcefully to contain inflation, we expect it to become more sensitive to growth disappointments once rates reach 3% later this year. How quickly the expected mix of restrictive policy, inflation moderation, and a slowdown in job growth end this phase of tightening has become harder to gauge and will be a key determinant of the life of this expansion.“

The Fed brings pain

TKer readers may noticed that the tone of the last several newsletters have taken a slightly darker turn. (See here and here. Tomorrow’s weekly edition won’t be much rosier.)

It started after the May consumer price index report, which suggested inflation hadn’t peaked earlier this year. Rather it suggested inflation was actually getting worse, despite months of tightening monetary policy. The same day the CPI report was released, the June University of Michigan consumer sentiment report showed that expectations for inflation also continued to deteriorate.

The news spooked a lot of folks who were expecting inflation to be improving. Importantly, it spooked the Federal Reserve, which responded on Wednesday by raising its target interest rate by a historic 75 basis points.

“The worst mistake we could make would be to fail,“ Fed chair Jerome Powell said on Wednesday. “We have to restore price stability. We really do… It’s the bedrock of the economy. If you don’t have price stability, the economy’s really not going to work the way it’s supposed to.“

Simply put, the Fed seems pretty hellbent on bringing inflation down. And as Powell said before, “There could be some pain involved in restoring price stability.“

The bottom line

I’m of the mind that the economy and the stock market are biased to the upside in the long run. We have a long history of recessions, depressions, geopolitical conflicts, financial crises, pandemics, and even inflation scares. And yet, the economy and stock market have never failed to recover losses and come back even stronger. (Read more here.)

But in the near term, everyone needs to manage their expectations. This is not the kind of environment where you should expect a sustained rally in stock prices. The Fed has made it explicitly clear that it’ll continue to actively pressure financial markets until it sees “clear and convincing” evidence that inflation is on its way down.

–

Related from TKer:

Sam Ro is the founder of Tk.co. Follow him on Twitter at @SamRo

Click here for the latest economic news and economic indicators to help you in your investing decisions

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube


Credit: Source link

ShareTweetSendPinShare
Previous Post

Ukraine becomes the third non-EU nation to join the European blockchain partnership (EBP)

Next Post

Renewed concerns about inflation has the Fed triggered

Related Posts

Surgent Accounting & Financial Education Presents New Online CPE Course on Tax Implications of Just-Passed Inflation Reduction Act
Finance

Surgent Accounting & Financial Education Presents New Online CPE Course on Tax Implications of Just-Passed Inflation Reduction Act

August 13, 2022
5
The market isn’t going away and it’s going to be a massive commercial opportunity
Finance

The market isn’t going away and it’s going to be a massive commercial opportunity

August 13, 2022
6
ServiceNow CEO is optimistic that a recession would be ‘short-lived’
Finance

ServiceNow CEO is optimistic that a recession would be ‘short-lived’

August 13, 2022
6
Filo Mining Reports Q2 2022 Results; Drilling Campaign Extends High-Grade Mineralization and Discovers New Porphyry Centre
Finance

Filo Mining Reports Q2 2022 Results; Drilling Campaign Extends High-Grade Mineralization and Discovers New Porphyry Centre

August 12, 2022
6
Bengal Energy Announces Fiscal 2023 First Quarter Results
Finance

Bengal Energy Announces Fiscal 2023 First Quarter Results

August 12, 2022
3
Next Post
Renewed concerns about inflation has the Fed triggered

Renewed concerns about inflation has the Fed triggered

Recommended

How the ICC Plans to Restructure Global Trade Finance for a More Sustainable Global Economy

Intumescent Coatings Market Size to Reach US$ 1.56 Bn by 2028

August 2, 2022
6
OPEC secretary general says Russia’s membership in OPEC+ is vital for success of agreement

OPEC secretary general says Russia’s membership in OPEC+ is vital for success of agreement

August 1, 2022
6
NeoVolta Announces Pricing of $3.9 Million Public Offering Priced at a Premium to Market and Uplisting to Nasdaq

NeoVolta Announces Pricing of $3.9 Million Public Offering Priced at a Premium to Market and Uplisting to Nasdaq

July 28, 2022
6
The Fed is ‘trying to walk the tightrope’ to bring down inflation, strategist says

The Fed is ‘trying to walk the tightrope’ to bring down inflation, strategist says

July 24, 2022
5
IMF warns of more crypto pain ahead, including stablecoin failures

IMF warns of more crypto pain ahead, including stablecoin failures

July 28, 2022
5
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Binance’s User Count Growing Due to Inflation, Says the Company’s Latin America Head
  • Surgent Accounting & Financial Education Presents New Online CPE Course on Tax Implications of Just-Passed Inflation Reduction Act
  • The market isn’t going away and it’s going to be a massive commercial opportunity

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?