"I Blame the Fed’s Forward Guidance for Market Instability"

Key Takeaways:

  • The relief rally is a sign the market believes the Fed may be less hawkish going forward.
  • Tech stocks, which are highly sensitive to borrowing costs, rallied the most.
  • The Fed is unlikely to admit the United States is in a recession until it hits the labor market.
  • The Fed’s decision to retire forward guidance is a welcome move.

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