The Fed is Sticking to Higher for Longer

Real Vision: Finance & Investing

Real Vision

Business News, News, Investing, Business

4.1 • 1.1K Ratings

🗓️ 14 December 2022

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Federal Reserve raised interest rates by 50 basis points today. It was a seventh consecutive rate hike from the Fed, four straight three-quarter point hikes. Markets moved lower in response to the expected lower increase, as forecasts now show a higher terminal interest rate later in 2023. Meanwhile, the U.K. inflation rate eased from a 41-year high in November. On today’s Daily Briefing, Darius Dale of 42 Macro joins Andreas Steno Larsen to break down what the Fed’s hike --- and the potential of deflation setting in --- means for asset classes in 2023. We’ll also be joined by Real Vision macro expert James Helliwell to discuss today’s U.K. Inflation data and what it means for the Bank of England’s rate hike decision tomorrow. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Good afternoon and welcome to the real vision daily briefing. My name is
0:11.6	Andreas Steno and oh boy, a roller coaster we had today. We are sending to you live
0:17.1	hot on the heels of the FOMC meeting, Wednesday, December 14. And we basically had
0:23.5	live tickets for the good old down up down pattern in equity markets around
0:28.0	this FOMC meeting, but ultimately we will probably end the day in red here,
0:31.5	almost across the board, but will anyone listen to what Jay Powell said? That is
0:38.0	the question for the next 30 minutes. And with me to help me guide us through
0:43.6	all of the noise around this FOMC meeting, I have a Jedi from the Dollar
0:48.4	Liquidity Galaxy, Darius Dale founder of 42 macro. Good to see you, my friend.
0:53.0	We'll use the force today, my friend. How you doing Andreas? We probably need the
0:57.2	force today because it's tricky out there. In 10, 15 minutes we will shift gears and
1:02.2	look a bit of global inflation pressures as well and the bank of England meeting tomorrow.
1:06.3	And therefore we have one of our editors in the UK with us as well. James Heliwell,
1:11.0	good evening to you and good to see you. Good evening. I hope that the electricity stays on
1:16.2	in the meantime here in the UK. It's a very bleak for us. I think it's not the internet
1:21.0	doesn't get cut off. Exactly. But first things first, Darius, what are you key takeaways
1:27.4	from this FOMC meeting? Oh yes, no one needs me to tell you that it was hawkish.
1:32.2	I thought there were sort of three key things that I heard that represented
1:35.8	incremental steps forward by the committee. So number one, the substantially more evidence
1:41.3	in terms of their characterization of what's been happening on the inflation from a reported
1:45.3	data perspective, that was new. It's a transition from the clear and convincing evidence,
1:50.8	clear and compelling evidence that they had highlighted earlier. And it sort of is an indication
	...

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