from Zero Hedge
Wooosh…Total chaos across markets as Putin’s escalating global war rhetoric and Powell’s nuclear bomb drop of ‘higher for longer’ rates smashed into extreme positioning, negative gamma, and low liquidity
Before we get to the main event, we note that during the Congressional hearings this morning, JPMorgan CEO offered a reality check for policy-makers and pollyannas:
“…there’s a small chance of a soft landing, and then there’s also a chance there’s a mild recession. There’s a chance it could be much worse given the war in Ukraine and all the other global political uncertainties. He says everyone should prepare for all these possibilities.”
“Many Americans are feeling the pain, and consumer confidence continues to drop.”
“I don’t think you can spend $6 trillion and not expect inflation”
The Fed hiked 75bps (as expected) but drastically shifted its rate trajectory expectations in a hawkish direction…