"I Really Do Think That Things Have Changed" - Goldman Macro Trader On Market Structure & The Fed Facing 'Ugly Truths'

Authored by Bobby Molavi, Goldman Sachs MD and Macro Trader,

Jitters... No Jitters... Jitters.

Last week CPI served a reminder that inflation has not yet been defeated. Jan and Feb hotter prints were discounted....the March hotter print has moved the markets mindset to later lift off (June to July) and fewer cuts (circa 2) for 2024. It also acted as yet another instance where the market has adopted a compartmentalise and forget followed by a buy the dip mentality. The PPI data took some of the anxiety out of the system before Middle eastern escalation adding a new dimension of risk and anxiety.