In a Bloomberg podcast today, the host asked a GOOD question. The guest got distracted and didn’t answer the question; I don’t think she was consciously avoiding it.
Question: For many years financial media have told us dozens of times each day that The Market Baked In a war or inflation, or The Market Priced In the latest Delphic mysterious central bank move. Most of these Bakes were not visible at all; they weren’t up or down moves, so there’s no way to verify what was being Baked.
For the first time in many years, Powell has told us FIRMLY AND PRECISELY AND REPEATEDLY AND CONSISTENTLY that he is restoring the economy to normal.
AND: For the first time in many years, The Market Didn’t Bake In this clear and obvious fact. The Market refused to listen, and continued to Bake In the previous infinite QE and eternal ZIRP.
Why did the oven fail?
Polistra's Mill 