Bostic, PTJ and Yellen both say that the Fed has finished. Bostic believes rates will remain at current levels for a little while without any cuts in the near future. PTJ however sees a recession in H2 which suggests rate cuts may be considered. Multiple waves of positive delta pulses 0-DTE are juiced.
Regional banks were the biggest gainers (because deposit data on Friday showed more outflows?? Or because there were no bank failures this weekend? The Small Caps were the winners of the day among US Majors. The X-date forecast is getting worse as FDIC withdrew 12bn from TGA & Treasury on May 4-5. Treasury also released new estimates for the extraordinary measures that remain. Looks like there will be $20bn in cash at the end of June 1, compared to an old expectation of $38bn.
May 15, 2023