Nomura Warns "Get Back Into Cash"; Higher Volatility Looms After Rate-Repricing

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by Tyler Durden
Monday, Feb 27, 2023 - 02:45 PM

Nomura's Charlie McElligott notes that the market has rightfully “trued-up” Fed terminal rate expectations in-line with spectacularly resilient growth data both domestically and internationally, following the FOMC’s multi-month “premature FCI easing” blunder which allowed for a reacceleration of “animal spirits” across inflation-, retail / consumption-,  labor- and even survey- / “soft-” (particularly within Services sector) data, pouring gasoline on a still too robust economy, relative to their purported inflation-fighting aspirations.

Source: Bloomberg