{"id":61829,"date":"2022-11-02T13:33:48","date_gmt":"2022-11-02T20:33:48","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=61829"},"modified":"2022-11-04T14:40:29","modified_gmt":"2022-11-04T21:40:29","slug":"fed-frowns-at-latest-bear-market-breakthrough-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2022\/11\/02\/fed-frowns-at-latest-bear-market-breakthrough-the-market-breadth\/","title":{"rendered":"The Fed Frowns At the Latest Bear Market Breakthrough – The Market Breadth"},"content":{"rendered":"\n

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

I continue to underestimate just how much these bear market rallies price in misplaced optimism over monetary policy from the Fed. Although Chair Jerome Powell remained overall consistent with the Fed’s hawkish, inflation-fighting message, the stock market plunged after an initial post-release surge. Accordingly, the latest bear market breakthrough<\/a> came to an abrupt end. The Fed frowns at every and any attempt to twist monetary policy<\/a> into hopes for a pivot, a plateau, or pause and today was no exception. In the wake of the market’s bullish response to the obvious notion that at some point rate increases must slow, Powell left no doubt about the Fed’s hawkishness. Powell again validated my contention that the Fed is still at the beginning of its hawkishness<\/a>.<\/p>\n\n\n\n

I took notes from the introductory statement and the Q&A from the press conference. My key bullets highlight Powell’s hawkishness and the reality that higher rates are likely to stick around for quite some time (bullets in order of appearance but and mostly paraphrased):<\/p>\n\n\n\n