Macro analyst Ryan Ricci, along with Daryl Jones and Drago Malesevic, detail the rocky road ahead accredited to the Fed tightening into a historic slowdown during this clip from The Macro Show.
Ricci explains that we are effectively “running down the mountain,” as the Fed keeps pulling liquidity out of the system on the heels of all-time M2 money supply highs. “The point here is that if the market expectations were to hold, then we have some serious tightening coming down the pipe,” says Jones.
This dynamic is shown through small businesses, as “small business optimism is now below pandemic low, and forward outlook absolutely craters to an all-time low,” adds Malesevic.
