The Big Flip thesis has been gaining traction in the financial world and describes the market’s misplaced belief in the path of inflation and policy rates.
The market is nearly unanimous in expecting a 0.25% rate hike during February's FOMC meeting, yet many expect a “pause” shortly thereafter. We beg to differ.
The Federal Reserve raised interest rates again, but Jerome Powell’s speech leaves many feeling uncertain as to the course the Fed will take in the future.
U.S. equities rallied following the FOMC’s 75 bps hike in interest rates, only to crash as Fed Chair Powell hinted at higher-than-expected terminal rates.
