Monday's Markets Update (May 22, 2023)
On Monday, Fed Bullard came out hawkish as usual, while Fed Barkin was on the fence, and Fed Bostic wanted to wait and see. Traders were bored. The NASDAQ (o: 12,644, c: 12,720) and BTC (o: 26,731, c: 26,862) were flat.
There are many who say that not only are FOMC members confused, but also that they speak too much. Of that we had a confirmation on Monday. Not one but three Federal Reserve Bank presidents — Bullard (St. Louis), Barkin (Richmond), and Bostic (Atlanta) — revealed their views on the economy and interest rates.
Bullard expects slow growth, suggesting a potential half-point rate increase this year. Barkin doubts inflation decline and is undecided about rate hikes in June. Bostic acknowledges challenges and favors a patient approach, waiting for more information. Opinions may differ regarding the future trajectory, but within the over-centralized Fed, only one opinion truly carries weight - that of Jerome, who is playing politics at our expense.
Other Markets Updates:
Turkey: The country's consumer confidence index in May jumped to 45.5 (previous: 43.8) - the highest level since July 2018. Expectations improved for the upcoming 12 months in terms of the overall economy, as well as households' financial situation. On the other hand, future inflation prospects rose (38.5 vs 36), along with concerns over unemployment in the following year (44.7 vs 42.2).