(Washington)

Markets are currently experiencing a great deal of volatility. The Nasdaq is in a correction and the Dow and S&P 500 have shed all their gains for the year. One of the big reasons why is investors’ fear of rising rates. With that in mind, many are hoping the central bank will save markets via the so-called “Fed put”, or the idea that if things get bad enough, the Fed will come in as a backstop with some sort of measure to boost asset prices. However, the truth is that Wall Street says we are not nearly deep enough into a correction/bear market for the Fed to take any sort of accommodative action.

FINSUM: Powell is much more hawkish than Yellen or Bernanke and we have no illusions that there is going to be any sort of supportive measure in the near term. We expect hikes to continue.