I had an interesting conversation with Mani Mohseni this morning that I'd like to share with you. Here are the key takeaways: Mani believes Powell will be hawkish and ignore the bank crisis, leading to more rate hikes and insistence on 2% goal inflation. - If Mani is right, this could be the trade of the century for us.
- Mani also thinks we will see the wildest day in the forex market
- The second scenario involves the Fed pausing and signaling rate cuts, which would cause them to lose credibility.
- The market is already pricing in rate cuts from May, but Mani believes the best strategy by the Fed is to hike 25bps and announce they are going to hold the rates.
- One additional point to consider is that bailouts are essentially canceling out interest rate hikes for the benefit of inflation, as these bailouts are flooding the economy with money.
- It's worth noting that last week the dollar was weak, but this conversation suggests that Powell's comments could reverse that trend. Furthermore, the EURUSD, GBPUSD, and Gold are all at resistance areas, and after Powell's comments, we could see major rejections.
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As always, stay vigilant and be ready for any market movement. To your trading success, Casey Stubbs P.S. Position your trades and manage risk. This info I shared could make you a lot of money. If you want reports like this sent to your email each week sign up for our swing trading reports. | 
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