Sobering Hard Landing aka Recession Next

You can almost hear ABC’s legendary MNF crooner Dandy Don Meredith sing “the economic party’s over” as WSJ wails in “Markets Brace for Hard Landing as Fed Delivers Sobering Message” that DEEP recession IS HEADED OUR WAY.

Finally, the Wall Street die hard Bulls can’t sugar coat the Fed’s latest 75-point interest hike … with MORE such hikes coming before the year’s out … along with chairman Powell’s clear-cut explanatory “suggestion” a hard landing, aka deep recession, almost certainly can no longer be avoided. Concluded the WSJ’s coverage: “This time, markets understood quite clearly what the Federal Reserve meant: Inflation is too high and it will likely take a recession to get it down. There is really no other way to interpret the economic and interest-rate projections Fed officials released Wednesday and Chairman Jerome Powell’s accompanying remarks.”

So much for Joe Biden and Treasury Sec Yellen’s repeated optimism there would absolutely, positively be an “immaculate disinflation,” in which inflation now running above 8% would somehow magically fall sharply to 2% before year's end (or early next) with virtually no increase in unemployment. Now, the Fed gurus “see unemployment reaching 4.4% in a year compared to 3.7% today, an increase leap having occurred in recessions dating back to 1948. Said Derek Tang of LH Meyer research firm: “They are trying to tell us there will be a hard landing; there is no other way.”

Davd Soul