{"id":59386,"date":"2022-04-07T01:04:45","date_gmt":"2022-04-07T08:04:45","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=59386"},"modified":"2022-04-07T01:12:36","modified_gmt":"2022-04-07T08:12:36","slug":"fed-speak-triggers-swirl-of-resistance-breakdowns-stiff-support-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/04\/07\/fed-speak-triggers-swirl-of-resistance-breakdowns-stiff-support-the-market-breadth\/","title":{"rendered":"Fed-Speak Triggers A Swirl of Resistance, Breakdowns, and Stiff Support – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong>:<\/h2>\n\n\n\n

How many times and how many ways does the Fed need to communicate its seriousness about normalizing monetary policy and fighting inflation? Apparently, the answer for Fed-speak is many times and a LOT of ways.<\/p>\n\n\n\n

Fed Governor Lael Brainard delivered one way with a speech on Tuesday titled “Variation in the Inflation Experiences of Households<\/a>“. Brainard’s speech mentioned or referenced inflation 76 times including inflation-fighting reassurance like “it is of paramount importance to get inflation down…inflation is very high, particularly for food and gasoline. All Americans are confronting higher prices, but the burden is particularly great for households with more limited resources.” As a result, Brainard went on the explain that “the Committee will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting.” While this plan is quite consistent with Fed Chair Jerome Powell’s game-changing speech on inflation<\/a> last month, the market was somehow caught by surprise by the minutes from the March meeting<\/a>. While the chatter in the minutes does not represent policy, the revelation of specific numbers apparently spooked markets all over again. The end result: two days of sharp selling in the stock market.<\/p>\n\n\n\n

Last week’s near bearish reversal<\/a> clearly put the stock market in a jittery mood. Steve Liesman perfectly summarized sentiment in CNBC’s Fast Money segment. He explained that if you haven’t been paying attention, the minutes shocked you. “The monetary policy dove is an endangered species,” and the minutes demonstrate no one on the Fed has interest in opposing the path to normalization. The result: a swirl of resistance, breakdowns, and stiff support in the major indices.<\/p>\n\n\n\n

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Wall Street selling off today!@steveliesman<\/a> joins the crew at the Nasdaq to discuss the Fed's plan to shrink its balance sheet by $95B a month. @timseymour<\/a> and @karenfinerman<\/a> weigh in on if now is the time for a shift in strategy. pic.twitter.com\/yWE2Z61LM5<\/a><\/p>— CNBC's Fast Money (@CNBCFastMoney) April 6, 2022<\/a><\/blockquote>