Over the past week, we basically learned what we already knew, which was that the FED has NO control over either energy or grocery prices and understands the pain that households are going through as they remain determined to hike interest rates in order to bring inflation under control.
So determined is FED chair, Jerome Powell to tackle inflation, which previously he rather flippantly tossed to one side by calling it TRANSITORY, that he will add to the woes of hard up families by hiking and hiking, even into a slowing economy and placing the US economy in RECESSION. If Powell worked in the private sector, he would have been let go a long time ago.
All the pieces in my jigsaw of economic f*ck ups are starting to fit together.
I single out the FED but most of the G10 Central bankers are as incompetent as the other. All you have to do is take 5 minutes and look at Christine Lagarde (ECB) and Andrew Bailey (BOE) to get a wider picture of what I am talking about.
From my perspective only Tiff Macklem (BOC) and Adrian Orr (RBNZ) can hold their heads up and stand away from the herd. Central Bankers have at time challenging roles, look we all do in senior management or as entrepreneurs but to reward incompetence with extended terms in office is just plain stupid and just as incompetent in my eyes.
Without sounding too cynical politicians extend Central Bank leaders’ tenures probably in order for them to have someone to blame when it all goes belly up....
In this week’s ZOOM, as we head into STAGFLATION / RECESSION I look back at last week’s volatility in FX and also look forward as to what I believe we have in store in the weeks and months ahead.
This weekend’s DRIVE THRU (ZOOM) link is below. Check it out to see what I did from a trading perspective and how I am working through the volatility.
THE WEEKLY FX DRIVE THRU BLOG (ZOOM EDITION):
Finally, always remember longevity in Forex trading can only be achieved through trading with a good MINDSET, RISK, TRADE and HEAD MANAGEMENT, and above all set your position sizes in accordance with the size of your account and allow for some flexibility. Trade with a TRADE PLAN, basically, plan your trades and Trade your Plan.
Be grateful for your wins and count them. Keep a POSITIVE MINDSET in play at all times, regardless of the market conditions.
Scott Pickering
The Pip Accumulator
Twitter: @weeklyfxpremium (Restricted feed - FX PREMIUM Trade Information)
Twitter: @theanalogtrader (Restricted feed - FX PREMIUM Market Commentaries & Views)
Twitter: @thepipaccumulator (Open feed)
https://weeklyfxdrivethru.com/disclaimer/
BLOG VERSION: #460 FREE NEWSLETTER
DATE: 26thth June 2022
THE WEEKLY FX PREMIUM: REVIEW OF THE MARCH 2022 PERFORMANCE… including “AN UP RALLY IN A BEAR MOVE”
WHAT DOES POWELL THINK, WHAT WILL POWELL SAY?
BANKING CRISIS… WOT BANKING CRISIS
INTEREST RATE POLICY – WHERE ARE WE GOING?
EYES ON LAGARDE