Chamath Palihapitiya: "The Markets Are About To Rip"

Despite his previous hawkish sentiment, Federal Reserve Chairman Jerome Powell has been calling for a soft landing after the markets have seen some of the highest inflation in decades. Many economists, pundits, and investors didn’t think the market would be heading for a soft landing after the aggressive interest rate hikes in 2022. Although Powell has declared that the battle against inflation hasn’t been won yet and rates will not be cut, it does appear that a soft landing is coming than most anticipated after the Federal Reserve announced a 25 basis point hike this past week and a very high possibility that the next rate hike will also be 25 basis points. In his speech, Powell reiterated the importance of the job market, in the Fed's decision on where interest rates will go. January’s jobs report showed nonfarm payrolls rose by nearly three times as much as economists had been expecting, with the economy adding 517,000 jobs when 187,000 had been forecast, which is a good indication that no, the economy isn’t slowing. Investor Chamath Palihapitiya, in his all-in podcast, gave his take on what he sees coming. In Chamath’s view, this is eerily similar to what the market saw in 2019.
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