Some quotes from Powell:
“We’ve always said it was going to be difficult, but to the extent rates have to go higher and stay higher for longer it becomes harder to see the path. It’s narrowed. I would say the path has narrowed over the course of the last year.”
A potential pause in interest rate hikes would be “very premature.”
“The inflation picture has become more and more challenging over the course of this year.”
“The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
“We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected,”
This hit tech companies hard. Are the growth days shifting, days of exuberant spending changing? Did the high growth technology sector really come to an end? I’m very skeptical since technology brings so many advantages and business efficiencies. However, I need to make sure any biases to technology aren't blinding me to its deterioration. Buying opportunity or beginning of a long term slow growth? I have to meditate on these questions during my 5 am alone time. I’m going to open myself up for answers to find me. And then sort or out a plan tomorrow morning 🙂
Key considerations:
- Forecast 3 years ahead, may take a while to get over recession and high interest
- Where should I ride out this volatility?
- What are consumers still prioritizing?
- Which tech end markets are still growing - Microsoft, Apple, Google?
- Are Fed's tools effective?
