For the past 18 months, we have endured the same narrative. In short, the economy is strong so expect more rate hikes. There have been periods of weakness where the narrative has stalled, only to resume on the first "upside surprise" in economic data. And here we are again.
It was just last Wednesday that it appeared the FOMC was done. Powell intimated as much and the fed funds futures curve was pricing in zero future rate hikes with cuts beginning in 2024. And then here came the rush of data last Thursday...GDP better than expected, housing prices rising, durable goods orders...
