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Are Bonds Competition For Stocks (EP.297)

Animal Spirits Podcast

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Is the Fed Going to Panic?

The economy is stronger than people realize. All it took was mortgage rates going from 7% to 6% for the housing industry activity to pick up a little bit and people are still spending. A month ago, if you're looking at the CMA FedWatch tool, there was a 0.3% implied probability of a 50 basis point rate hike. It was 18% a week ago and now it's up to 27%. The market is not necessarily expecting the Fed to panic.

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