Fed's Kashkari: -Inflationary indicators have been higher than predicted, but this is expected to be temporary

Translating Kashkari:
We were only kidding sending out Bullard.
It's all transitory and steady as she goes.

Next week if they stick with Kashkari line presented by next Fedling, risk will rally which is what they want but without goosing inflationary expectations.

The only thing that's going to rally is the USD as risk sells off. The exit has begun.

they like to confuse the market,

Still think bullard is a drama queen.

I dont believe in RISK ON anytime soon. Commodities go down. EU makes itself tied to China’s economy which is a mistake. U.K. looks at Australia for bushes while Australia has pretty dark clouds above itself. Canada must cooperate with USA as this is one of the few options left. In addition to all this, there are too many geopolitical conflicts in the world which means RISK OFF. USA appears to be the only one with a bright outlook and an economy which will rocket pretty soon. The investors don’t care about this kind of statements as they see and understand what’s going on.
I think buying US dollar is a good trading business right now, but this is just my opinion. Don’t follow me. Follow your own analysis.

I welcome this sort of "information", kinda test to my deduction and logic ability. Sure, "information"s are born to make people confused, only "truth" makes people believe. So far I believe in nothing from FED, no matter they are useful or not.

It is going to be an interesting week to come.
Fed is acknowledging that things must move beyond complete focus on Covid recovery.
Are they going to do an abrupt about face and new policy direction?
Their balance sheet which was thrown in a panic at markets is not going to now just get disregarded as if the Future is so clear and full blown growth is about to take over.

The stimulus money has been spent by many consumers which accelerated near term demand but earning power is not growing at rate fast enough to now make consumers go all in.

My Local Big Box is not all that busy which suggests there is not all that much money available to support the Higher price structures which got generated by supply shortages and freebie Federal helicopter funding.
Job growth is not all that strong either, no matter the reason.

Consumer Debt then becomes the vehicle which might sustain purchases, but shopping to you drop does not come off as where this is all going.

Fed I believe will take a more cautious approach and wait and see before hitting the Brakes.

Bullard was a pressure valve release for Fed taking much heat about inflation rocketing upwards.
The real economy is still struggling and many people are now deferring spending plans as the price hikes mean low value gained by spending now,

This view of course may be flat out wrong, I am not a mind reader, it is a reasonable assessment of where things are at. If Risk off lies ahead I do not think it will be result of Fed action but something else going on we know nothing about.
If it is to be risk on, which is higher probability, as Fed is not likely going to change course for now.

How many forward quarters of earnings are already factored into current S&P? There is also the peak growth whispers going around. This is just PE multiple expansion due to Fed policies, not higher prices based on earnings growth, cannot be sustained. When you propel prices up like this you have just borrowed from the next 5 years. Very hard to imagine DOW 42,000 or S&P 5,500, NDAQ 19,000. New levels of absurdity each leg up from here. Had to be stopped.

Would add one more thought, hardly one week ago there was Powell, LaGarde, Carstens (BIS), head of bank of France all spouting off about CB involvement with climate change.
Clearly Trillions upon Trillions of new funding to finance C.C. agenda along with that spending inflationary impact, now this week all of a sudden Fed got Religion about inflation.

Whatever happened to alter the song watch your Butts this week.

Commodity and crypto r the option left, US growth based on QE and pandemic?? Nobody go anywhere anytime soon.