Has the Fed Abandoned Risk Assets? | Joseph Wang
Forward Guidance
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The Normalization Statement of the Fed
The terminal rate is just the highest point the market thinks that it will reach. And after that it levels off or goes out slightly. That's what really matters. The magic about how Fed conducts policy is it doesn't, policy is conducted instantly talked through forward guidance. When they say the words in which you want to watch for is when the market begins to think that maybe the hiking cycle will go longer than they think. I think that's when there might be some more pain.
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