FAST FIVE: Market Expects Recession Cry To Be Met With Fed Put
Market Expects Recession Cry To Be Met With Fed Put By Simon White, Bloomberg Markets Live reporter and strategist Is it possible to believe things will get worse and better at the same time.
This year's bear market is one of the worst since 1929.
The US has so far avoided a recession, but not all bear markets coincide with one (1987 is the canonical example).
In other words, the market believes the Fed put is getting closer.
What the Fed really needs to see in order to meet expectations for a pivot is a drop in inflation, whether or not this happens to coincide with a recession.