Betting on a 2022 rate hike from the Fed? Isaac Poole says that’s a mistake | Ausbiz

How many times have we heard the phrase “we’ve never seen anything like this before?” Probably one too many times over the last 18 months. However, it’s a more applicable phrase than ever for the JOLTS read in the US and in particular, how labour demand is not correlating with supply. Isaac Poole from Oreana Financial Services says rising wages will start putting pressure on the Federal Reserve, adding they need to start thinking carefully about what counts as “transitory”. Looking ahead to the FOMC Minutes, Isaac says the market has been ready for some time for the Fed to start tapering. However, the critical message according to Isaac is that interest rates don’t need to start rising as soon as it happens. Just look at the post-GFC period. The markets may be failing to price in a possibility the Fed won’t hike and Isaac says there’s another mistake waiting to happen. (Source: Ausbiz) Click here to watch the interview.

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