Option Millionaires

[jimmybob]

Action Economics Survey results: it has been another tough week amid hawkish central bank surprises. With the FOMC, BoE, SNB, BoC, RBA and many other central banks now boosting rates (there have been 124 rate hikes so far this year) to address elevated inflationary pressures, fears of a stagflationary environment are increasing, with concerns it will morph into a recession. This week’s Survey Medians on the funds rate show another 75 bp rate increase from the FOMC at the July 26-27 meeting, followed by a 50 bp increases at the September meeting, and then 25 bps in November. There is not a lot of data on the immediate horizon. Existing home sales are seen slowing to a 5.400 M clip in May, with new home sales little changed at 0.592 M. Consumer confidence is expected to remain at the all-time low of 50.2 registered in the June preliminary report. The events calendar is chalk full of Fedspeak, however, with Chair Powell going to Capitol Hill for his semi-annual Monetary Policy Report