Fed: what to do as the terminal rate draws near?

There is pivot and pivot. The pivot that the markets have been waiting for all summer was that the Fed would ease its monetary policy in 2023. Jerome Powell snuffed out that hope in Jackson Hole. Now, it is another pivot that the markets are anticipating: that the Fed will reduce the speed of its policy rate hikes. This will not yet be the case next week. For the fourth time in a row, the FOMC will raise rates by 75bp. At this pace, the gap with the terminal rate is closing but t...