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The Fed's Tightening of Financial Conditions
When you say break something, how much damage are we talking? Is the sell off in the S&P 500 of a little over 20% in 2018 that caused the Powell pivot? Is that enough of a break or do we need a bigger break? And is it not in stocks? It's in credit. I'm going to define break something as an event, an event that causes the Fed to have to change the course on tightening. One of them is a tightening of financial conditions. The other one is maybe the economy turns south and that they have to start dealing with the economy turning south.