“I also posit that the rise in rates may have been in response to a note published Monday night by Zoltan Pozsar, titled War and Interest Rates. The piece covers our favorite topic: global political economy. It is worth reading at least twice. A key takeaway is that Pozsar maintains that we need to take Powell at his word about his will to fight inflation and that the “risk of the FED hiking to 5or 6% is very real, and ditto the risk of rates cresting there despite economic and asset price pain.” If Pozsar is correct … well, do the math.”

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