MBCC TH 11th December'23 - "All eyes on CPI tomorrow and FOMC on Wednesday, does the mood change from bad-news-is-good-news?"

So market has been pricing in the glass half full mood with “bad-news-is-good-news”, as inflation is cooling off. Well after 550 bps rate rise, one would certainly hope so!

But the key question here is, has the Fed tightened too much for the market to move to a “bad-news-is-bad-news”?