by means of confoundedinterest17
The marketplace is pricing in 3 price will increase in 2022. And in all probability a quicker than anticipated withdrawal of stability sheet stimulus.
Because of this, The Russell 2000 Enlargement index is plunging (orange line) relative to the Russell 2000 Price index (white line) which is down in 2021.
The Société Générale (SGI) US price and “high quality” indices are telling the similar tale. The SGI US “High quality” index is falling like a paralyzed falcon whilst the SGI US Price index is up for 2022.
It’s reasonably mystifying that markets can be soooooo delicate to a few price will increase from The Fed, in particular because the Taylor Rule means that The Fed’s goal price will have to be 17.36%. Despite the fact that you don’t just like the Taylor Rule or disagree with its inputs, you will have to admit that the space between the place The Fed is (0.25%) and the place they will have to be (17.36%) is … k-razy.
However this is the place we take a seat.