All traders with a career have gone through the phase of looking for the Holy Grail, a miraculous strategy that results in and offers a millionaire reward throughout their lives, which ends up almost in a valiant disappointment, considering that the demand almost invariably ends in a lot wasted time and money. Now on this day, the sentiment on Wall Street lives in an equally utopian scenario, with investors waiting for the FED to solve an impossible equation, to continue with a dovish policy in a phase of strong economic growth, which brings with it higher inflation.
Jerome Powell and the rest of the board members have been trying very hard not to shake the boat, with repeated promises to continue the current monetary policy for a prolonged period of time, even in the case of an aggressive rise in inflation, however, just like in all bubbles in the history of the market is a matter of time, being certain that the time can be extended in an inventive way, but it will be very difficult that the asset purchase program does not have an inversion with the reduction of the purchase amounts, and in the long term with the reduction gigantic FED balance sheet. It will be this topic, more than the interest rate hike, that will cause the biggest waves of volatility and according to most economists questioned by Bloomberg, the day of this announcement should occur sometime in the third quarter, perhaps for a repeat of the correction of 2018.
