Fed Chair Warsh chose violence by raising +25bp. Recovery in stocks Thursday affirms this max hawkish stance is a positive setup into month-end.

This past Wednesday, Fed Chair Warsh chose "violence" taking a maximum hawkish stance on inflation and stocks sold off sharply closing down -1%. Thursday, equity markets rallied erasing those losses and now up ~1% from Tuesday's close. To us, this makes sense. As we discussed in our Wednesday commentary, the "max hawkish" stance by Fed Chair Warsh arguably is actually a bullish setup for equities:

We see multiple reasons the Fed decision has created a bullish setup:1. Peak hawkish Fed = har...

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